FDCPA Violations by Zombie Debt Collectors

The FDCPA and Zombie Debt

The Fair Debt Collection Practices Act (FDCPA), codified at 15 U.S.C. 1692, is the primary federal law governing debt collection. It applies to third-party debt collectors and debt buyers -- the exact entities most commonly involved in zombie debt collection. The law prohibits deceptive, unfair, and abusive collection practices and gives consumers specific rights when dealing with collectors.

Zombie debt collectors are among the most frequent FDCPA violators because their business model -- collecting on old, poorly documented debt -- inherently creates situations where the law is likely to be broken. When a collector contacts you about debt that is decades old, was already paid, or was discharged in bankruptcy, the chances of an FDCPA violation are extremely high.

Common Violations in Zombie Debt Collection

• Threatening to sue on time-barred debt: If the statute of limitations has expired, threatening legal action violates the FDCPA's prohibition on false or misleading representations.
• Collecting discharged debt: Attempting to collect a debt that was discharged in bankruptcy violates both the FDCPA and the bankruptcy court's discharge injunction.
• Misrepresenting the amount owed: Adding unauthorized fees, interest, or penalties to the original balance.
• Failing to validate: Not providing written notice of the debt within 5 days of first contact, or failing to verify the debt when challenged.
• Harassment: Calling repeatedly, using profanity, threatening violence, or contacting third parties about your debt.
• Collecting from the wrong person: When documentation is poor, debt buyers sometimes pursue the wrong consumer entirely.

Documenting Violations

If you believe a zombie debt collector is violating the FDCPA, documentation is everything. Start a detailed log of every interaction. For each contact, record the date, time, phone number, name of the caller, what was said, and any threats or misrepresentations made. Save all written communications -- letters, emails, and text messages.

If your state permits one-party consent recording (meaning you can record a conversation you are part of without the other person's knowledge), consider recording calls with debt collectors. In two-party consent states, you can inform the collector at the start of the call that you are recording. Many consumers have won significant FDCPA cases based on recorded calls showing clear violations.

Filing Complaints and Lawsuits

Report FDCPA violations to the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov, your state attorney general, and the Federal Trade Commission (FTC). These agencies can take enforcement action against repeat violators and large debt buying operations.

You also have a private right of action under the FDCPA. You can sue the collector in state or federal court for statutory damages up to $1,000 per lawsuit, actual damages (including emotional distress), and attorney fees. Many consumer protection attorneys take FDCPA cases on contingency because the statute provides for fee-shifting -- the collector pays your attorney fees if you win.

The deadline to file is one year from the date of the violation. Do not wait. If you need to stop collection calls immediately, send a cease and desist letter.