The Ultimate Zombie Debt Quiz

By: Staff

4 Min Quiz

Image: refer to hsw

About This Quiz

If you've ever had a company try to collect on a loan you don't actually owe, you've dealt with zombie debt. Zombie debt can be difficult to deal with, as can the companies that collect this debt. Do you know what to do when these harassing calls start to come in?

To avoid future credit problems, what should you do if your credit card is stolen?

The first thing you should do if your credit card is stolen is contact the credit card company. This will help avoid serious credit problems later on.


What will most credit card companies do if you report that your card has been stolen.

Credit card companies usually handle the theft of a card by cancelling the card, ignoring the purchases, and contacting the authorities. You won't be charged for those purchases.


How does an agency you've never heard of get your debt information?

Debts are constantly being sold and resold. Sometimes you will end up owing money to an agency with which you've never interacted.


Which of these statements best describes zombie debt?

Zombie debt refers to debt for which you should not be held responsible, but which you can not seem to get erased from your record. Like a zombie, these debts seem difficult to kill.


How might zombie debt hurt your credit?

Just because a credit company's claim is false doesn't mean it won't appear on your credit record. Always keep an eye on your credit report, to avoid false charges and damaging reports.


Which of these has contributed to the profitability of zombie debt collection?

Identity theft can cause many problems with your credit, including debts that are not your responsibility suddenly haunting you.


To avoid zombie debt you should check your credit report at least how often?

You have a legal right to an annual free copy of your credit report, so take advantage of that opportunity to keep tabs on your credit.


What do credit card companies do when their efforts to collect on a debt fail.

Once a credit card company sees it is not making progress collecting on a debt, they write off the debt.


After a credit card company writes off a debt it will often do which of the following?

Credit companies are not in the debt collection business. They simply sell the debt to a collection agency, and the agency does the rest.


What is the price range that collectors will pay to purchase a debt?

A collection agency will buy a debt for as much as twelve cents on the dollar, or for as little as a portion of a penny.


How much money did collectors profit from zombie debt in 2006?

In 2006 debt collect profits (from zombie debt only) exceeded $110 billion!


In 2006, the federal government took actions against which of these companies for improper debt collection?

While the actions of Enron and Halliburton are infamous, some of the action of NCO Financial Systems may be even worse. They have even been accused of trying to collect on the debts of the deceased from their loved ones.


Asset Acceptance Capita's revenues increased by how much between 2001 and 2005?

In the four years between 2001 and 2005, Asset Acceptance Capita quadrupled its annual revenues.


Which of these was written to protect consumers from improper debt collect?

In 2006 congress passed the Fair Debt Collection Practices Act, which limited how collection agencies conduct their business.


Which of these government organizations deals with complaints against collection agencies?

The Federal Trade Commission fields more complaints against collection agencies than against any other type of financial group.


A debt collector is legally obligated to do which of the following?

The Fair Debt Collection Practices Act requires debt collectors to identify themselves. Get the collectors identity, and keep it in your records for later use.


When contacted by a collection agency regarding a debt you know is not yours, you should do which of these?

Documentation is a powerful legal tool. The moment you get a call regarding zombie debt, you should respond with a certified letter that demands the collection agency cease all contact. Keep a copy of both the letter and the mailing receipt.


If you've filed for bankruptcy, the debt being collected can be fought using which of these?

When someone files for bankruptcy, they receive a discharge letter from a court. This letter is legally binding, and can be used to block most collection attempts.


Which of these actions are debt collectors not allowed to engage in?

While collections agencies have the right to try and collect on a debt, federal law bars them from harassing you.


Which of these advocacy groups can provide helpful information about handling zombie debt?

The National Association of Consumer Advocates has specialists who advise people on what to do when faced with zombie debt.


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