'Zombie Debt' Haunts Consumers

Summary


MELVILLE, N.Y -- After Kim Mullen filed for bankruptcy in 1993, she cut up her credit cards in her lawyer's office. Since then, the Levittown resident has managed to obtain a good credit rating.

But in December, a debt collector contacted her, saying she had an unpaid card balance of $5,655 from 1992. With interest, the letter claimed, the debt had grown to $19,400.

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Extract


'Zombie Debt' Haunts Consumers

As old debt seems to rise from the dead, it's taken on a name -- "zombie debt." And in recent years, more and more such debt is coming back to haunt consumers, according to their advocates and lawy...

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