So They're Called Zombie Debts

From yahoo, this is an appropriate term for something I personally had to deal with. Basically:

• Someone stole your identity and spends a bunch of money in your name
  
• You report the fraud
• The bank writes it off as bad debt, but,
• Sells your account to a debt collection agency for some money
  
• The debt collection agency tries to scare you into paying up later on.
  

In my case, I was initially offered a "discount" to pay "only" half the amount I was not responsible for in the first place. I explained that I was a victim of ID theft, faxed them a written statement declaring as such. They say they'll take care of it.

Then 3 months later they called me again making the same "offer".

This cycle repeated itself a couple of times before they finally went away. I remember the tone from the collection agency as being somewhat aggressive and they represent themselves as some form of litigation agency or another. As the yahoo article states above, it's a good idea that you not panic and allow yourself to be brow-beaten. And know your rights.