Zombie Debt

Zombie debt is a bill the original creditor (company from whom the purchase was made) believes they can never collect and have given up.

A collection agency usually buys this debt for pennies on the dollar and owns the right to try to collect and keep any money they can recover. This debt can truly be an old debt, but it can also be a debt based on a stolen credit card, identity theft or a billing error made by the creditor.

You may have taken the appropriate steps to successfully resolve this, however that does not mean the debt cannot reappear as a zombie debt. Should you have an old debt out there or a collection agency contacts you learn you rights, find out your state’s statute of limitations on collecting old debts and the agency’s limitations on legal collection practices.

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