Zombie debt: old debts and time-barred lawsuits
A debt collector may not sue you, or threaten to sue you, on a debt whose statute of limitations has expired. In New York the limit for most consumer credit debts is 3 years, and a later payment does not bring the debt back to life. New Jersey allows 6 years for contract debts and Florida 5 years for written contracts, and a collector that sues or threatens suit past those limits can owe you damages.
"Zombie debt" is an old debt that comes back. Often it was sold, sometimes more than once, to a debt buyer that now wants the full balance. Sometimes the debt was paid, settled or never yours at all. Often it is simply too old to sue on.
Once the statute of limitations has run, a debt collector may not sue you on the debt, and it may not threaten to. Doing either is a violation that can make the collector pay you.
What it looks like
- A new name on an old debt. A letter from a company you never dealt with, about a card or loan you stopped paying years ago.
- A lawsuit on a stale account. A summons from a debt buyer on a debt whose last payment was well past the state's limit.
- The threat without the suit. "Settle now to avoid litigation" on a debt that can no longer be sued on.
- The "good faith payment" pitch. A caller urging a small payment "to show good faith," which in some states can affect the clock.
- A debt that was paid or discharged. An old account you settled, or wiped out in bankruptcy, resurfacing. See debt you do not owe.
The law
Regulation F states the rule directly: "A debt collector must not bring or threaten to bring a legal action against a consumer to collect a time-barred debt" (12 C.F.R. § 1006.26(b)). A time-barred debt is one for which the applicable statute of limitations has expired (§ 1006.26(a)). The rule does not apply to proofs of claim in bankruptcy. The FDCPA's ban on threatening action that cannot legally be taken reaches the same threats (15 U.S.C. § 1692e(5)), and misrepresenting the legal status of a debt is a violation too (§ 1692e(2)(A)).
The limitation period itself comes from state law, and it differs across the three states this firm serves:
| State | Time to sue on the debt | Does a later payment restart it? | Authority |
|---|---|---|---|
| New York | 3 years, consumer credit transactions | No. After the period expires, payment or affirmation does not revive or extend it | N.Y. CPLR 214-i |
| New Jersey | 6 years, contract and account claims | An oral promise does not; a signed written acknowledgment can | N.J.S.A. 2A:14-1 |
| Florida | 5 years, written contract; 4 years, oral contract or store account | State rules apply; ask a lawyer before paying | Fla. Stat. § 95.11(2)(b), (3) |
New York's rule came from the Consumer Credit Fairness Act, effective April 7, 2022. It matters because it closes the door that zombie debt used to walk through: a partial payment on an expired New York consumer credit debt does not bring it back.
What you have to show
That a debt collector (debt buyers count when collecting is a principal purpose of their business) sued or threatened to sue on a consumer debt after the limitation period expired. The key facts are the date the debt went into default or the last payment, which state's law applies, and the date of the suit or threat. When the clock starts can be contested, so gather every statement you have.
What you can recover
Under 15 U.S.C. § 1692k(a), a collector that violates the FDCPA is liable for your actual damages plus additional statutory damages of up to $1,000 per lawsuit. The FDCPA requires a company found liable to pay the consumer's reasonable attorney's fees and costs. Where the collector sued you, the FDCPA claim is separate from your defense of the collection suit, and the two are often handled together.
In Florida the FCCPA provides actual damages, statutory damages up to $1,000 and punitive damages in the court's discretion (Fla. Stat. § 559.77(2)). In New York, GBL 349 provides actual damages or $50, whichever is greater, increased up to three times actual damages capped at $1,000 for a willful or knowing violation. This site does not estimate what a case is worth.
What to do now
- Do not pay or promise anything yet. Especially in New Jersey and Florida, talk to a lawyer before making a payment or signing an acknowledgment on an old debt.
- Find the date of default or last payment. Old bank statements, the original creditor's statements, or your credit report can show it.
- Keep every letter. The collector's letters may show the charge-off date and the chain of owners.
- Dispute in writing. A written dispute within the validation period requires verification before collection continues. See ignored dispute.
- If you are sued, answer. Do not ignore the papers. The limitation period is a defense to raise in the case, and the answer deadline is short. Read sued by a debt collector.
The clock
Two different clocks run here: the collector's time to sue you, in the table above, and your time to sue the collector for violating the law, below.
| Your claim | Time to sue | Authority |
|---|---|---|
| FDCPA | 1 year from the suit or threat | 15 U.S.C. § 1692k(d) |
| Florida FCCPA | 2 years from the violation | Fla. Stat. § 559.77(4) |
| New York GBL 349 | 3 years | N.Y. CPLR 214(2) |
In New York, New Jersey and Florida
New York. The 3-year limit and no-revival rule of CPLR 214-i give New Yorkers the strongest zombie-debt protection of the three states. DFS rule 23 NYCRR 1 and, in New York City, the DCWP rules at 6 RCNY 5-77 also regulate how collectors handle old debts. Consumers usually sue through GBL 349, which lets the court award a prevailing consumer reasonable attorney's fees. See the New York page.
New Jersey. Contract debts carry 6 years, and only a signed writing can restart the clock on a simple contract claim (N.J.S.A. 2A:14-1). See the New Jersey page.
Florida. Written contracts carry 5 years and oral contracts and store accounts 4 (Fla. Stat. § 95.11). The FCCPA bars asserting a legal right the person knows does not exist (§ 559.72(9)), reaches original creditors too, and requires a company found liable to pay the consumer's reasonable attorney's fees and costs. See the Florida page.
Common questions
Does a time-barred debt disappear?
Not exactly. The statute of limitations limits the creditor's right to sue. Regulation F forbids a debt collector from suing or threatening to sue on a time-barred debt, but it does not by itself forbid every request for payment. State rules can add more protection, and a collector may never misrepresent the legal status of the debt.
If I make a small payment, does the clock restart?
In New York, no. Under CPLR 214-i, once the three-year period for a consumer credit debt has expired, a later payment, a written or oral affirmation, or other activity on the debt does not revive or extend it. In New Jersey an oral promise does not restart a contract claim, but a signed written acknowledgment can. Florida has its own rules. Talk to a lawyer before paying anything on an old debt.
The collector already sued me on an old debt. What now?
Do not ignore the papers. The statute of limitations is a defense to raise in the case, so get advice before the answer is due. The answer deadline is short. A suit on a time-barred debt can also support your own claim against the collector under the FDCPA.
Is the statute of limitations the same as how long a debt stays on my credit report?
No. The limitation period controls lawsuits and is set by state law. How long a negative item can be reported is set by the federal Fair Credit Reporting Act, generally seven years for most items. A debt can be too old to sue on and still reported, or the reverse.
Tell us what they did.
One conversation with an attorney, in your language. We tell you which laws the collector or the credit bureau broke, which deadline runs first, and what to save this week. If it is not a case we can take, we say so and tell you where to go.
(718) 484-7510The FDCPA and the FCRA require a company found liable to pay the consumer’s reasonable attorney’s fees and costs. Our fee arrangement is confirmed in a written retainer before we begin. English, Russian and Spanish in-house; an interpreter for any other language.