MEASURE ADDRESSING “ZOMBIE DEBT” ADVANCES

Bill will protect consumers from deceptive debt collection

AUGUSTA—The legislature will consider a bill sponsored by Democratic Senator Ed Mazurek of Rockland to protect consumers from abusive and deceptive debt collection of so-called “zombie debt.”

“Zombie debt” is debt settled in bankruptcy proceedings, accrued from identity theft, or debt that is expired because it is past the statute of limitations. Collection agencies purchase the debt for pennies on the dollar and then pursue consumers to collect it, sometimes using aggressive and harassing tactics. Cases have been found where collection agencies continue to aggressively pursue debt paid up through another debt collection channel.

“If you owe a bill, you should pay it. But that’s not what we’re talking about here. Zombie debt is debt that has already been settled but is resurfacing, or debt collectors going after the wrong family,” said Senator Mazurek. “People have a right to privacy and a right to not be harassed. We need to be on the side of the consumer not predatory collection agencies.”

According to the Federal Trade Commission, they receive more complaints about debt collectors than any other industry. Senator Mazurek’s bill will adopt some provisions from a New York policy to increase transparency and disclosure to better protect consumers from zombie debt collection.

For the second regular session of the legislature, bills must be approved by the Legislative Council, a committee comprised of the ten legislative leaders. The Legislative Council met today to consider 401 bills for the second regular session, including Senator Mazurek’s bill “An Act To Protect Maine Consumers from Abusive and Deceptive Debt Collection.”

The full legislature will reconvene in January 2014.

###