This post was contributed by a community member. The views expressed here are the author's own.

Health & Fitness

Fair Debt Collection Practices and Zombie Debt Collectors

Fair debt collection practices and time-barred debt being collected by "zombie debt collectors"

I recently posted a blog regarding Fair Debt Collection Practices. 

In the blog, I mentioned verifying that the debt is a real debt, and it is truly yours.  While there are “scammers” out there I would also like to address “zombie debt collectors”.  These are collection agencies that purchase bad debt that has expired according to the state statute of limitations.  The Fair Trade Commission addresses this under FTC and Time Barred Debts , citing that a creditor cannot sue for “time-barred debts."

The rules governing this vary from state to state and by the type of debt (such as a written contract or note versus an oral contract as well as an open-ended contract/note).  Florida statutes can be found on line at Florida Statute 95.11.  Federal statute allows for a creditor to sue up to 7 years after the last payment was made. 

Find out what's happening in Carrollwood-Northdalewith free, real-time updates from Patch.

However, Florida law reduces that time to 5 years for a written contract or promissory note and 4 years for an oral contract or open-ended contract/note.

While you do still owe the debt, the creditor is prohibited to sue you in its collection efforts.  You also have the right to ask them not to contact you.  The Fair Trade Commission (FTC) states to do this in writing and suggests you send it via USPS registered mail with a return receipt requested.  This will assure you that the creditor has received your directive to stop contacting you. 

Find out what's happening in Carrollwood-Northdalewith free, real-time updates from Patch.

If a creditor or debt collector does attempt to sue you for a “time-barred debt”, do not ignore the lawsuit/complaint.  You need to respond letting the court know it is such a debt.  It can then be dismissed by the court.  However, if you do not defend yourself, the creditor/debt collector can be awarded a judgment against you.

To quote the FTC’s website: 

What should I do if I'm sued for a time-barred debt?

“Defend yourself in court. If you're sued to collect on a time-barred debt, pay attention, and respond. Consider talking to an attorney. You or your attorney should tell the judge that the debt is time-barred and, as proof, provide a copy of the verification from the collector or any information you have that shows the date of your last payment. The lawsuit will be dismissed if the judge decides the debt is time-barred. In any case, don't ignore the lawsuit. If you do, the collector likely will get a court judgment against you, and possibly take money from your paycheck, bank account, or tax refund. Assert your FDCPA rights. It's against the law for a collector to sue you or threaten to sue you on a time-barred debt. If you think a collector has broken the law, file a complaint with the FTC and your state Attorney General, and consider talking to an attorney about bringing your own private action against the collector for violating the FDCPA. “

Where to file complaints:  Federal Trade Commission, Florida Attorney General, and if you believe the debt collector to be a scammer or acting illegally, also file with the FBI. 

If you are a victim of unfair debt collection practices and need assistance, contact  the Florida Consumer Law Center, P.A.  for additional information and or a consulation we can be reached on the web or via phone at (813) 868-3484. 

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?

More from Carrollwood-Northdale