An Old Zombie Debt Has Resurfaced. What Should I Do? – Greg
 | By Steve Rhode Ask me your question. |
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“Dear Steve,
I have a zombie debt from 1997 that a company is calling about now. It was from a large retailer and while I’m pretty sure it was paid (Only a couple hundred dollars) I won’t swear to it, it’s just too far back to be sure of. Texas law says soL has ran out (4 yrs). I can do the registered letter thing but from what I’m seeing here is they’re entitled to try and pursue it anyway. I would rather not open any dialogue with these folks as they are just a little lacking in the mind your manners department. I don’t trust them to not try to claim that I have reopened this.
What I want to know is how to stop them from calling. A Cease and desist letter from an attorney?
Greg”
Dear Greg,
You have two choices.
First, you could pay the debt and keep proof the debt was paid and never have to deal with this again. Paying is an option if you weigh the value of your time versus the amount it will cost you in time and money to deal with this.
Second, if this company does not own the old debt and is a debt collector, you could send them a cease and desist letter. You don’t need an attorney to do that.
But, you need to take a look at your consolidated credit report and see if it is reported on any of the three credit bureaus. If it is reported as an open collection item then it is lowering your credit score, so pay it and close the item.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
Big hug.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
Source: An Old Zombie Debt Has Resurfaced. What Should I Do? – Greg
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Comments
Comment by Thirtysomething Finance Right, but doesn’t that suggest that there isn’t anything the creditor can do to collect the bill? Unless it already has a judgment, it can’t fix the judgment and thus can’t execute on it. All it can do is hound the debtor.
Not to say that he shouldn’t pay it, if he owes it and can pay it.
Thirtysomething Finance´s last blog ..PAYDAY! 
Steve Rhode Reply:
December 1st, 2009 at 4:35 pm
Agreed. But the constant hounding or contact can get really annoying. Better to deal with it than ignore it or try to hope it will go away.
Steve
Comment by Greg First part – Check credit report – Clear
Second part – Decide to pay them to shut them down or not
Decided no on this one. Paying them for a dubious debt is a form of blackmail in my eyes. If they can’t collect they can’t pay their people. And every business needs money to keep going. They’ll have to get by without mine.
Steve Rhode Reply:
December 6th, 2009 at 4:11 pm
Greg,
There is nothing that prevents them from collecting on a valid old debt. The statue of limitations does not prevent this. If you feel you’d rather deal with this moving forward, that’s your choice. Just make sure as you move forward, that you keep any documentation showing that a debt has been paid in full with your other important papers you need to keep forever.
Good luck.
Steve
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A twelve year old debt? You might want to consult a lawyer to see whether they can even pursue this debt against you — that debt is pretty old.
Thirtysomething Finance´s last blog ..PAYDAY!
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Steve Rhode Reply:
December 1st, 2009 at 3:38 pm
A debt can be chased until the debtor dies and then the estate can be pursued. The statute of limitations only limits the ability to sue, not chase for collection.
Steve
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