An Old Zombie Debt Has Resurfaced. What Should I Do? – Greg

“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?


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

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Damon Day - Pro Debt Coach

See also  How to stop a junk debt buying collection company from re-aging an old debt?
Steve Rhode

8 thoughts on “An Old Zombie Debt Has Resurfaced. What Should I Do? – Greg”

  1. Steve wouldn’t a cease and desist letter and denial of the validity of debt after sending the creditor a notice that the Statute of Limitations was exceeded mandate the collector no longer bother/harass the alleged debtor?
    Also after 7 years (From the date of initial reporting on the debtors credit rating)they can not report to the credit agencies again.(retime a report)
    I am presuming both these point would need to be outlined in a written letter by the debtor to the collector. Also what does one need to write in the letter to address that if the creditor fails to write back?I was thinking that asking for written confirmation back if they contest thisstatment would be manadatory and failure to write after reciept of a confirmed letter (with US postal delivery confirmation)would serve as record would serve as legal record Is this correct? What other methods can they use besides writing letter asking for funds or following FDCA rules regarding other forms of contact?

    • Kevin,

      Excellent observations but a couple of points.

      Just because a debt is beyond the statute of limitations does not mean that collectors can’t attempt to collect on it, even aggressively. It just means the person can’t be sued.

      While the date on the debt isn’t technically supposed to be changed, it happens, especially when a debt is sold from one company to another.

      Finally, remember that a cease and desist letter does not apply to the owner of the debt. The owner may be the collection agency contacting the person, especially on an old debt.


  2. 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.

    • 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.


  3. 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! =-.


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