Zombie debt, or old debt that collectors resurrect, can confuse and stress many consumers. Knowing your rights in Maryland can help you navigate these situations effectively.
What is zombie debt?
Zombie debt refers to old debts that creditors charged off or settled but collectors suddenly revive. These debts often exceed the statute of limitations, making them unenforceable in court. Yet, collectors still attempt to recover them.
Maryland’s statute of limitations
In Maryland, the statute of limitations for most debts is three years. If a debt is older than three years, a creditor cannot legally sue you to collect it. Yet, this does not prevent collectors from contacting you about the debt.
Your rights as a consumer
Maryland’s consumer protection laws provide several rights when dealing with debt collectors. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using deceptive, abusive, or unfair practices. You can request written verification of the debt and dispute any inaccuracies. Additionally, you can instruct the collector to stop contacting you, and they must comply.
Steps to take when contacted about zombie debt
If a collector contacts you about zombie debt, verify the debt by requesting written proof from the collector. Check the statute of limitations to ensure the debt falls within Maryland’s three-year limit. If the debt is not yours or was already paid for, dispute it in writing. Familiarize yourself with the FDCPA and Maryland’s consumer protection laws to handle the situation.
Empower yourself with knowledge
Understanding your consumer rights in Maryland helps you effectively handle zombie debt. Knowing your rights under the law allows you to protect yourself from unfair collection practices and maintain control over your financial situation.