Aa
Credit
Like millions of Americans today, my credit is not so great right now. Some of it is from my divorce, and some from years ago just being young and stupid "oh, I'll charge it today and pay it off next month".
How is it that a credit card company can CHARGE OFF a credit card debt, but then turn around and sale that debt to a collections agency? Does anyone know the answer to this question? I HAD a credit card that was charged off on my credit in 2001, here it is 2008 and that card debt has been sold to 3 different companies. How does this happen?
How is it that a credit card company can CHARGE OFF a credit card debt, but then turn around and sale that debt to a collections agency? Does anyone know the answer to this question? I HAD a credit card that was charged off on my credit in 2001, here it is 2008 and that card debt has been sold to 3 different companies. How does this happen?
Swampy likes the reference Peekawho posted. A charge off is an accounting maneuver, it does not mean that you don't owe the debt.
Here is the problem. The charge off goes on your credit record, as does the collection agency when it buys the debt. When you pay the collection agency, they'll take off the collection agency record (mark it as paid).
The charge off can't be removed, or marked as paid, because there is nothing to pay as the debt has been sold. Its something that happened. You have to wait the seven years or however long.
Here is the problem. The charge off goes on your credit record, as does the collection agency when it buys the debt. When you pay the collection agency, they'll take off the collection agency record (mark it as paid).
The charge off can't be removed, or marked as paid, because there is nothing to pay as the debt has been sold. Its something that happened. You have to wait the seven years or however long.
This happened to my SIL. She paid a collections agency, and STILL cannot get the charge off removed, or even marked as PAID.
I think that it is wrong that they allow these companies to sale the card debt like this. I now have 4 collections on my credit from ONE debt.
I think that it is wrong that they allow these companies to sale the card debt like this. I now have 4 collections on my credit from ONE debt.
I found this about charge offs, don't know if it will help.
http://www.bankrate.com/brm/news/debt/20021216a.asp
http://www.bankrate.com/brm/news/debt/20021216a.asp
I gather the term "charged off" refers to the Credit Card Company cancelling the use of your card so you could no longer use it, but you still had an outstanding amount owing on the card?
If that is the case, it is perfectly legal for any company that is owed money and has not recieved payment of same to "sell" the debt to a Debt Collection Agency.
My advice would be to enter into some form of payment arrangement to get the debt paid. The longer the debt is left unpaid the more interest you will end up paying. Unfortunately the debt will not simply go away by ignoring it.
If that is the case, it is perfectly legal for any company that is owed money and has not recieved payment of same to "sell" the debt to a Debt Collection Agency.
My advice would be to enter into some form of payment arrangement to get the debt paid. The longer the debt is left unpaid the more interest you will end up paying. Unfortunately the debt will not simply go away by ignoring it.
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