Check Processing Bureau Enforcement Division

We urge caution if you are being contacted about an old debt. Sometimes referred to as " Zombie" debts, or "Junk Debt" collections, these collectors purchase old debts from other collectors. Debts outside of the statute of limitations are sold for only pennies on the dollar. There is no law that prevents this practice. These collectors take advantage of consumers who do not know their rights. Some attempt to collect on fictitious debts. If a debt seems unfamiliar to you, don’t assume you are wrong, assume instead that your rights are being violated.

Know the statute of limitations. If you racked up a debt in another state, you might want to check the statute of limitations there as well. But generally, it's the statute of your current state that applies. If the statute has expired, the collection agencies' legal remedies are limited. As a general rule, you should keep all letters, account statements, and court records (even from 15 years ago). Do not provide the collection agency or junk debt buyer with updated personal information. Never acknowledge a debt with a collector or agree to any payment until the collection agency validates the debt (past billing statements are not considered proof). Never accept credit card "offers" that come with an offer to settle a debt or that request payment in any other way.

If contacted by phone, put the phone down and walk away. There's little to gain and a lot to lose if you keep talking. You could inadvertently extend the statute of limitations or find yourself roped into a repayment agreement that might not be in your best interest. The debt collector has no obligation to tell you your rights. Write them. If ignoring them isn't working, consider writing a letter demanding the agency stop contacting you. Send it certified mail, return receipt requested. Federal law requires them to comply with your request. Make sure in the letter you specifically say that you aren't acknowledging you owe the debt. Most courts that have addressed the issue have ruled that the FDCPA does not prohibit debt collectors from trying to collect time-barred debts, as long as they do not sue or threaten to sue you for the debt. If a debt collector sues you to collect a time-barred debt, you can have the suit dismissed by letting the court or judge knows the debt is, indeed, time-barred.

Whether a time-barred debt, or any debt for that matter, can appear on your credit report depends on how long the debt has been delinquent. Debts that have been delinquent more than seven years cannot appear on your credit report, with certain exceptions. In addition, a debt collector may not try to collect a debt that has been discharged in bankruptcy, no matter when it was incurred.