MEASURE ADDRESSING “ZOMBIE DEBT” RECEIVES PUBLIC HEARING

Senator Mazurek sponsors bill to protect consumers from deceptive debt collection

AUGUSTA—Democratic Senator Ed Mazurek of Rockland introduced a measure today to protect consumers from abusive and deceptive debt collection, also called “zombie debt.”

“If you owe a bill, you should pay it. But that’s not what we’re talking about here,” said Senator Mazurek. “Zombie debt is debt that has already been settled but is resurfacing, or debt collectors going after the wrong family. It’s deceptive at best, and downright dishonest at worst.”

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.

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.

According to the Federal Trade Commission, they receive more complaints about debt collectors than any other industry. In some cases, collection agencies continued to aggressively pursue debt already paid off through another debt collection channel.

“People have a right to privacy and a right to not be harassed,” added Senator Mazurek. “We need to be on the side of the consumer, not predatory collection agencies.”

The Labor, Commerce, Research and Economic Development Committee will hold a work session on the bill, LD 1648, “An Act to Protect Maine Consumers from Abusive and Deceptive Debt Collection Practices,” later this session.

###