The Washington Post, February 25, 2020: Zombie debt: CFPB proposal could trick consumers into bringing dead debts back to life
The CFPB estimates millions of consumers are contacted about such time-barred debt every year. In a new proposal, the bureau says debt collectors could continue to try to collect on those old debts but would have to tell consumers upfront they are outside their statutes of limitations and the consumer can no longer be sued to recoup the money.
The collection of time-barred debt “can pose consumer protection concerns,” the CFPB says in its most recent proposal. Reached by a debt collector, a consumer may prioritize that old debt, leaving them with “less money to pay another debt.”