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Debt Collector Accused Of Abusing A Consumer Over A Zombie Debt

A consumer has accused Global Holding & Investment Co. of threatening her with a lawsuit in regards to a 20-year old "zombie" debt.   The term "zombie debt" refers to debts that are “obsolete” as defined in the Fair Credit Reporting Act (FCRA). Under the FCRA, accounts are obsolete after 7 1/2 years after the first default which was never cured.

Although debt collectors can attempt to collect a zombie debt, they may NOT sue or threaten to sue in order to collect money.  Threats to sue to collect a zombie debt violate the Fair Debt Collection Practices Act (FDCPA).

Many consumer do not realize that if they pay money towards the "zombie debt" it often revives the debt. 

Have you received phone calls or letters demanding or requesting that you pay a debt which is several years old?  

Did a debt collector threaten to sue you or tell you that a lawsuit was already filed regarding an older debt?  

If you have said "yes" to the above questions, you may be dealing with a debt collector who is in violation of the Fair Debt Collection Practices Act (FDCPA).   Please call California Consumer Protection Attorney, Todd M. Friedman at (877) for a free consultation and to find out if you may be entitled to compensation from the debt collector in violation.

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