BBB Warns Consumers About Resurfacing “Zombie Debt“
CHATTANOOGA,TN – The better Business Bureau (BBB) is alerting consumers to a rise in collection attempts for “zombie debt” – old debts that are nearing or have passed the statute of limitations. These debts, frequently enough purchased for pennies on the dollar by debt buyers, can reappear unexpectedly and cause confusion and potential financial harm, according to BBB President Michele Mason.
The BBB advises consumers who receive interaction regarding a debt to first determine if they actually owe the funds or if the debt is invalid. If a debt is disputed, a written letter challenging its validity, along with any supporting documentation, should be sent to the collection agency.
For debts that are legitimately owed and can be paid, the BBB recommends securing a payment agreement in writing before making any payments. If a consumer is unable to pay,credit counseling services are a valuable resource; the BBB recommends utilizing BBB-accredited providers,which can be found at BBB.org.
Consumers should be aware that while a debt may no longer be legally enforceable after the statute of limitations expires, making a payment or even acknowledging the debt can restart that clock. Furthermore, unpaid debts are typically removed from credit reports after seven years, but restarting the statute of limitations through payment could negatively impact a credit score.
The BBB also cautions consumers to be vigilant against debt collection scams.While most agencies are legitimate, scammers frequently enough attempt to phish for personal information. Resources to learn more about identity compromise are available at BBB.org, and potential scams can be reported to BBB.org/ScamTracker. Templates for disputing debts or requesting a cease of contact can be found on Consumer.gov.
For additional information on credit repair, debt relief, and budgeting, visit BBB.org/financial-wellness-hq.
Festive Forest Coming Soon
The BBB also announced the upcoming launch of its third annual Festive Forest, a collaboration with EPB and the city of Chattanooga, lighting up Miller Park from November 26th through New Year’s Day. Organizations interested in sponsoring a tree can find more information and submit an interest form at bbb.org/Chattanooga or contact Will Hannah at will@chattanooga.bbb.org or 423-266-6144.
