Imagine going about your day when out of the blue, you get a call or a letter from a debt collector. They’re demanding payment on a $900 debt they say dates back 15 years. It’s not on your credit report and you don’t remember owing it. Now you’re wondering: is this even legal?
If this scenario sounds familiar, you’re not alone. Older debts, sometimes called “zombie debts,” have a way of resurfacing, especially when aggressive collection agencies buy up portfolios of expired accounts. But don’t panic. Here’s what you need to know and do if an old debt comes back to haunt you.
The Law Protects You Even If You Owe the Debt
Before you pull out your checkbook, understand this: under the federal Fair Debt Collection Practices Act (FDCPA), collectors are not allowed to harass, lie, or mislead you. They’re required to prove that the debt is yours, and they must send you a written notice detailing the amount, the original creditor, and your right to dispute it.
Even if the debt once existed, it may now be time-barred, which means it’s beyond the statute of limitations and can no longer be enforced in court.
What Is a Time-Barred Debt?
A time-barred debt is a debt that’s too old to be legally collectible through a lawsuit. In Georgia, most consumer debts have a statute of limitations of between 3 to 6 years, depending on the type of debt and the last activity date.
This doesn’t stop collectors from trying to get you to pay. But it does mean they can’t legally sue you for it unless you inadvertently restart the clock.
Watch out for these traps:
- Making a payment (even a small one) can revive the debt.
- Acknowledging the debt in writing may reset the statute of limitations.
- Ignoring the collector without responding could open the door to more aggressive tactics.
What Should You Do if a Collector Contacts You?
Here’s a step-by-step guide if you're contacted about a really old debt:
- Don’t admit to anything right away. Stay calm, gather your facts, and avoid saying, “Yes, I remember that.”
- Ask for validation in writing. Under the FDCPA, you have 30 days to request verification. This forces the collector to provide documentation.
- Check your credit report. If the debt isn’t listed, or it’s listed as closed or charged off, it’s another indicator that the account may be beyond its legal lifespan.
- Send a dispute letter. If you don’t believe the debt is yours or suspect it’s past the statute of limitations, send a written dispute via certified mail. Keep copies.
- Consult with a consumer rights attorney. A quick conversation can help you understand your position and options without inadvertently resetting the statute clock.
Why It Matters for Georgians
In Georgia, financial scams and aggressive collection tactics have become increasingly common, especially targeting older adults or those recently rebuilding their credit. Some debt buyers purchase decades-old portfolios for pennies and pursue payment without solid evidence, betting that consumers won’t know their rights.
According to the Consumer Financial Protection Bureau (CFPB), complaints about attempts to collect debt not owed are among the top grievances received each year. In many cases, consumers are bullied into paying debts that are invalid, inaccurate, or legally unenforceable.
So, Should You Pay That 15-Year-Old Debt?
Maybe. Maybe not.
If the debt is yours and you want to resolve it for personal or moral reasons, negotiate a written settlement. But make sure the agreement clearly states that the debt is time-barred and the collector waives any right to sue.
But if you don’t recognize the debt, or you suspect it’s long expired, your best move is to protect yourself by documenting everything and seeking legal guidance.
Final Thought:
When debt collectors reach into the past, you don’t have to be caught off guard. Knowledge is your best defense. Do you know what’s on your credit report and what isn’t?
Stay alert, stay informed, and don’t let zombie debt drain your peace of mind.