How to Deal with Zombie Debt

WikiHow, a how-to-manual that you can edit, has excellent advice on dealing with zombie debt-old debts that cannot legally be collected through lawsuits. Companies buy the debt for pennies on the dollar and then use nefarious tactics to get consumers to pay. Tactics include harassing calls, threats to sue, and re-aging the debt (faking the date of last activity on the account) so as to report the debt on the consumer’s credit reports. WikiHow outlines steps to take and not take. For example, don’t acknowledge the debt, do not make a payment on the debt, ask for proof the debt...

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Consumers Who Filed for Bankruptcy Get Help with Old Debts on their Credit Reports

A recent court order in a class action will help millions of consumers who filed bankruptcy but have been plagued with old debts showing up on their credit reports. The old debts, which are typically forgiven by the courts in a bankruptcy filing, are still being reported as active on many consumers’ credit reports. As reported in the Wall Street Journal, Experian and TransUnion say they have already updated their credit files to be compliant with the court order. TransUnion also sent notices to some customers saying they “may experience a slight change” to their credit scores if any of...

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