HowStuffWorks is an interesting website that explains, ready for this, how stuff works! Its an interesting website and you should look at it.
Today, I write to you about their article on “How Zombie Debt Works.” I understand that they basically replace what they are discussing with “stuff” to get the title, but in this case, they should have changed “works” to “doesn’t work.” Why? Because zombie debt does not work. It is a way for debt collectors to try to get money from people without ever having to prove that the money is owed. Its a fascinating way for debt collectors to get money.
Consumers should read about this. I expect zombie debt to increase in the next five years. With personal bankruptcy filings up, when those are discharged debt collectors will still try to collect money. Also, with income down, debt collectors will wait until they believe they can recover money, even if it means the statute of limitations has expired. It won’t matter to the debt collector that there are FDCPA and Rosenthal Act violations – they will try to collect the money anyway. An educated consumer can fight back.