What Is a Zombie Debt?
When a debt or negative account is so old that, under federal credit reporting standards, it should no longer show on your credit reports, it is referred to as “zombie debt.” There are many misconceptions you may have seen on YouTube and other social media platforms about how long an account can appear on your credit report. The truth is, how long an account may report depends on the type of account from which the debt originated, as well as the status of the account. Bankruptcies and judgements can stay on your credit report longer than collection accounts from credit cards. Some larger accounts can show on credit reports for up to ten years. The most common rule of thumb is that most accounts should be removed from your credit reports after seven years and six months have passed from the date of the first missed payment on the account.
A “zombie debt” is normally an account that is older than seven and a half years, and in most states, past the statute of limitations to be collected. Zombie debts typically occur when a debt collector purchases an old debt from the original creditor and attempts to get you, the consumer, to pay the debt. Such debt “scavenging” can be a very lucrative business for collection agencies, as they often purchase old debts for pennies on the dollar and attempt to collect the full amount of the debt from the consumer. If an old debt is being reported on your credit report, you could be dealing with zombie debt. Many debt collectors know it’s illegal to report these accounts due to their age, but are willing to take their chances if it brings in more money than they pay out in lawsuits.
What Should I Do if a Zombie Debt is Appearing on my Credit Report?
Do you have a debt haunting your credit score that you believe could be a zombie debt? If so, then you might be entitled to damages under the Fair Credit Reporting Act (FCRA). At Raburn Kaufman, we are available to help you evaluate your potential zombie debt claims and see if any FCRA violations have occurred.
Reach out to us at 877-662-2455 or simply fill out one of our convenient intake forms on this website to set up your free case evaluation. You can also email info@raburnkaufman.com to set up your zombie debt discussion with one of our attorneys. If you do have a valid FCRA case, always remember: if we don’t win, you don’t pay!
