Zombie debt: CFPB proposal could trick consumers into bringing dead debts back to life

The Washington Post - A new proposal from the Consumer Financial Protection Bureau could spark a fight about what should happen to consumers’ old debt. Debt collectors lose the right in many states to sue consumers after their debt reaches their statute of limitations, typically three or more years. But there’s a loophole: If the consumer makes a payment or acknowledges the debt in writing, that can be used to try to revive the life of the debt, creating what some consumer advocates call “zombie debt.”

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