Expired debt coming back to haunt some consumers

Millions of Americans who have subprime credit ratings are now receiving offers for new credit cards, and some of those are the result of a controversial alliance between lenders and debt collectors.

Some companies are now issuing credit cards to consumers with thousands of dollars in old debts on the condition that they pay back some of the credit card debt lenders long since abandoned as being uncollectable, according to a report from the Wall Street Journal. Typically, this debt falls outside the consumer's state's statute of limitations for collection.

Consumer advocates say that this debt relief practice is deceptive and federal authorities have looked into some of these companies' practices, the report said. However, lenders and even some borrowers say that those who have bad enough credit ratings should welcome the opportunity to begin borrowing once again.

In general, many of the nation's largest credit card lenders are now offering consumers more opportunities to obtain new lines of credit. Recent studies suggest the average subprime borrower in the U.S. received several offers for new cards in the first nine months of 2011.