Schumer: Senate Bill Would Make Sure Debts That Have Already Been Resolved Stay Dead

Statement

On a conference call with reporters, U.S. Senator Charles E. Schumer today said witches, ghosts and vampires are not the only things to be afraid of this Halloween, there is also "Zombie Debt" -- debt that has already been resolved and is no longer outstanding, but continues to live on through credit reports. Schumer explained that this debt is sometimes purchased by "debt scavengers" who, either knowingly or unknowingly, try to collect on the debt that is either inaccurate or no longer owed. Schumer said that this problem is not simply an unwelcomed knock at the door, but a devastating error that could impact everything from a consumer's job application to being denied a mortgage to buy a home.

"Collection agencies can be far scarier than any ghost or goblin, and their efforts to trick unwitting consumers into paying debt that has already been put to rest is just plain wrong," said Schumer. "That is why I am urging my colleagues to support this legislation, which would require banks and other creditors to ensure that a person's credit report is immediately revised once a debt has been settled and gives consumers' legal recourse against these creditors if they are not."

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