Monday, June 26, 2006


by Harriet Johnson Brackey
Posted June 25 2006

Latoya Gibson thought debt collectors were never again going to bother her, after she went through bankruptcy several years ago.

But the 30-year-old Fort Lauderdale public housing counselor had the kind of debt that never dies. It just keeps popping back up on your credit report.

Zombie debt, some call it. It happens when your credit-card company sells off its bad debts. The buyer pays pennies for every dollar you owe and tries to turn that investment into a few nickels. They track you down and demand payment.

Often, bad debt buyers or their collection agencies will do one more thing that is especially harmful to your credit rating. It often happens in secret. And it's illegal.

Read more about Zombie Debt here

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