Zombie Debt In Ohio: Can Debt Collectors Still Come After Old Debts?

Ohio residents who believe their past debts have been put to rest will be shocked when they come to life once again. These dormant debts are typically called “zombie debts” and are often acquired and traded by collection agencies at extremely low prices. Although debt collectors will make efforts to bring these debts back to life, consumers have their own set of rights. 

What is zombie debt? 

Zombie debt typically implies debt that has either expired according to the statute of limitations or has been settled, discharged, or just become inactive. Zombie debt collection companies usually buy large amounts of such debts and try to recover the whole sum, sometimes several years later, when the original debt collector has already written off the debt.

The type of zombie debt could include:

• Expired credit card debts
• Outstanding medical bills
• Utility bills
• Discharged debts (bankruptcy)

Since this debt is so old, the paperwork might be incomplete or even incorrect. Nevertheless, debt collectors can contact debtors via correspondence and phone calls. 

Ohio’s statute of limitations on debt 

Under Ohio law, the majority of written contracts, such as those involving credit cards, fall under the six-year statute of limitations. In other words, if you fail to pay back your debt, you have six years from your last payment before the lender or collection agency can file a lawsuit against you to recover the debt.

The fact that the statute of limitations expires does not mean that the debt is completely forgiven. However, you cannot be sued anymore for that debt. Collectors, however, can still try to recover the debt voluntarily. 

How do debt collectors try to revive new debts? 

Another major problem related to zombie debt is the risk of “resuscitation” due to a particular set of actions by either the debtor or the collector. For instance, in Ohio, any kind of payment toward the zombie debt would effectively reactivate the statute of limitations. In other words, the statute of limitations would begin ticking down again.

Collection agencies may:

• Insist on making good-faith payments
• Demand written confirmation of the debt
• Push the consumer into some action or engagement

All of the above would make a consumer accidentally revive his or her zombie debt. 

Your rights under federal law

There is a federal law that ensures debt collectors do not engage in abusive or deceptive activities. According to this law, debt collectors are prohibited from:

• Lying about the nature of a debt
• Threatening litigation when they have no right to do so
• Harassing or abusing debtors
• Collecting debts after disputing without verification in writing

It is a violation of the law if a debt collector tries to sue on a time-barred debt or deceives you into thinking you owe money you actually don’t. 

What should I do if I’m concerned about zombie debt? 

If someone contacts you concerning an old debt, you should:

• Not make payments without first validating the debt
• Ask for verification of the debt in writing
• Find out what the statute of limitations is before you respond
• Do not acknowledge the debt before you know all your options

In certain situations, you might want to consult a lawyer regarding whether the debt is still valid. 

Talk to a Columbus, OH, FDCPA Attorney Today 

Are you being harassed by debt collectors? If so, their conduct might be illegal. Contact a Columbus, OH, consumer attorney today to schedule an appointment, and we can begin discussing your case right away.