Source: The Washington Post
Debt collectors are not allowed to sue on old debts that have expired. These debts are so old that there is often little or no proof showing who owes the debt and how much is owed. The most common complaint about debt collectors is that they harass consumers for debts that the consumers do not owe. And debt collectors are finding new ways to exploit loopholes and trick consumers into reviving zombie debts.
Oklahoma social worker and mother of five Terrie Raymer was one victim of the collections industry's new tricks. A debt collector garnished 19 cents from Raymer's paycheck and later sued her, claiming that the 19 cent garnishment had brought the debt back to life.
Another collector fooled consumers with zombie debts by offering them new credit cards, but then enrolling them into a repayment program for their old debts without their permission.
The Consumer Financial Protection Bureau has proposed a new rule that would loosen the standards for debt collectors who sue on old debts by allowing them to argue they did not know the debt was expired. Read More.
The Consumer Financial Protection Bureau has extended the comment period for its (terrible) proposed rule on debt collection to
September 18, 2019.
You can submit your comment through NACA's convenient portal to tell the CFPB that consumers need better protection from unfair zombie debt collection.
NACA is also collecting signatures on a petition that will be submitted to the CFPB. Sign and share the petition so we can show the CFPB that consumers want better protection from abusive debt collection tactics.