topic Zombie Debt in Rebuilding Your Credit

Zombie Debt

FluteLadyWHS12 — Tue, 20 Nov 2012 22:14:52 GMT

Hi. So this is my first post. I have been lurking on here for many months and have finally signed up. Well, today I just checked my mail and I have a dunning notice from a zombie debt thats is so old its in my maiden name and has long fell off my reports. Its from Asset Management Professionals, LLC and under account identification it is showing the current creditor as Oakwood Financial Services LLC the OC is Alltell Communications and the balance they are showing is $746.69. They are offering my two options balance settled in full by one time payment of $224.01 or 3 monthly payments of $85.87. Then of course at the bottom it talks about dispute the validity of this debt and so forth. What would be the best action here. TIA

Re: Zombie Debt

gemntheholigram — Tue, 20 Nov 2012 22:39:31 GMT

One thing- Is it in collections on your credit report?

If its that old, I would call Experian and get an estimated timeline for when it will drop off. Do you know when it is due ot drop off?

Re: Zombie Debt

FluteLadyWHS12 — Tue, 20 Nov 2012 22:46:18 GMT

It is not currently showing in collections. It was at one time many years ago and fell off my report many years ago. It has not shown up on any off my annualcreditreport pulls for the past 3 years or so. I am looking right now for the oldest report I have but even still I don't believe it will be on there because it is that old.

Re: Zombie Debt

FluteLadyWHS12 — Tue, 20 Nov 2012 22:49:08 GMT

I am thinking that I should go ahead and DV. I'm trying to use the $$ I do have to work on the CA that are currently reporting on my CR. I was really not expecting this.

Re: Zombie Debt

Shogun — Wed, 21 Nov 2012 05:15:31 GMT

Hello and welcome to the forums.

With zombie debt like your experiencing you basicall have 2 options.

1. Pay the debt, or part of the debt. Offer them $50 to settle the debt and go away for example.

2. Send a cease and desist letter. This will prevent them from anymore contact, but it doesn't get rid of the debt. They can sell it off to another CA.

Re: Zombie Debt

beb86 — Wed, 21 Nov 2012 05:20:09 GMT

How old is the debt and what is your states SOL

Re: Zombie Debt

FluteLadyWHS12 — Wed, 21 Nov 2012 14:33:38 GMT

I do wish to pay. Like I said I wanted to focus the $ on hand for current CA. I really don't want to take any of the offers they are giving me. Being that it is years old, looking back I found it went off my report in 2010, I do have the power to negotiate. Will $50 really send them away? Would I do a PFD? I already sent off a DV because honestly I really don't believe that is the correct amount that they are claiming I owe. I don't want it popping up again I think it came up because I recently was approved for a Walmart CC.

Re: Zombie Debt

FluteLadyWHS12 — Wed, 21 Nov 2012 14:34:29 GMT

This debt fell off in late 2010 and the SOL for FL is 5 years.

Re: Zombie Debt

llecs — Wed, 21 Nov 2012 15:15:17 GMT

If past FL's 5-yr SOL and past the federal 7-7.5 yr CRTP, then I personally wouldn't do anything unless I morally felt compelled to pay it. They can't report and if sued you'd have a solid defense.

You can't do a PFD since it isn't reporting.

A DV is fine. They might do away or verify. If you wanted to pay, do not admit to the debt and state such, but offer a settlement of $x and see what they say. I personally have a couple of CAs chasing after debts that are over 15 years old. They send letters 2-3 times a year and I ignore them. As long as you don't admit to the debt or make a payment on it without their written response back of a settlement agreement, then you are OK.

Re: Zombie Debt

FluteLadyWHS12 — Wed, 05 Dec 2012 02:22:29 GMT

Thanks. I have not heard back anything from the DV. And they are not reporting on my CR.

Re: Zombie Debt

JohnL1900 — Wed, 05 Dec 2012 02:48:57 GMT

I and something similar but from am old Sprint account then passed thru a few collection agencies and finally ended up with LVNV until I got a letter recently from Resurgent Services or something to that effect offering to settle for 25% of the balance.

Checked all three credit reports, saw that neither Sprint nor LVNV was still reporting and it's well past the SOL so I ignored the letter and filed it away.

Re: Zombie Debt

annielorie — Wed, 05 Dec 2012 14:50:48 GMT

As Illecs says if you feel compeled to pay pay. Be careful though they could report it as settled CO. By making arrangements you wake the clock. Personally anything that old I could not even verify after 7 and a half years Lots of roomates so I blatantly till them to not bother. Then cease and desist letter.

Re: Zombie Debt

jmyers76 — Thu, 06 Dec 2012 20:14:58 GMT

Some zombie debt collectors can be very litigeous. You might expect for them to file suit to collect on it , if its a big bill. HOwever should that happen, all you have to do is show up with the affirmative defense that its past the sol, slam dunk.