Schumer Calls ‘Zombie Debt’ Haunting

Witches, ghosts and vampires are not the only things to be afraid of this Halloween.

New York Senator Charles Schumer is urging fellow lawmakers to support a Senate bill that cracks down on so-called "Zombie Debt."

"Zombie Debt" is debt that has already been resolved and is no longer outstanding, but continues to live on through credit reports.

“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.”

Schumer says in 2014 alone, more than 2,400 Upstate New Yorkers lodged complaints related to issues with credit reporting or debt collection.