Instead of buying the debt to turn a profit, Oliver forgave it.
Aslegal site Nolo explains, zombie debt is debt that is very old or no longer owed.
Its debt that comes back to life when a collection agency buys it for cheap.
Zombie debt is often invalid, and collectors use intimidating, sneaky tactics to get people to pay.
Theoretically, that doesnt sound so bad, right?
Collectors just help companies reclaim lost funds, and, after all, we should all repay our debts.
In practice, though, debt collecting is a very shady business, and zombie debt exemplifies this.
Zombie debts dont work this neatly.
This is important because its how debt collectors turn a profit.
After that time, those unpaid debts are time-barred, and a debt collector cant sue for time-barred debts.
This time framethe statute of limitationsvaries depending on your state.Here are the statutes of limitations for all 50 states.
When you restart the clock, collectors can sue you, and many of them do.
Thats separate from the statute of limitations.
So if youre dealing with an agency breaking the rules, you canreport them to the FTC.
The FTC lays out yourrights in dealing with debt collectors.
The Consumer Financial Protection Bureau offerssample request letters, too.
To avoid restarting the statute of limitations, dont even discuss the debt until you receive that notice.
In most cases, dealing with zombie debt is easier said than done.
A quirky television host might come to your rescue, but dont count on it.
Photo byRyan Jorgensen - Jorgo
