Supreme Court v. Zombie Debt Collectors

Noting that Midland buys old debt it knows is not legally recoverable because of various state laws preventing collection after a number of years, Sotomayor asked, “Apparently, you collect on millions of dollars of these debts. So is that what you do?”

Yes. Yes it is.

This is a conversation every consumer lawyer has had many times with clients. No, you don’t owe the debt any more. Yes, they can still collect it. Yes, that’s fucked up. Apparently the Supreme Court just learned about zombie debt, and a few of the justices, at least, seem to agree that it’s pretty fucked up.

The decision in Midland Funding, LLC v. Johnson should be out in June.