2006-08-30 17:24:58 · 11 answers · asked by Frank R 1 in Business & Finance ➔ Credit
Yes it's legal to report a charged off account and demand payment.
But it, like anything else on your reports, must be reported without any inaccuracies.
Just because it is charged off does not mean that they have sold it off, they may still own it.
2006-08-30 17:32:05 · answer #1 · answered by echo 7 · 0⤊ 0⤋
You need a lawyer from your state to answer this question; laws vary by state legislation.
It sounds like the lender has written your loan off as a loss so the lender is right to contact the credit bureau and tell them such. The lender does have the right to continue or hire a collection agency up to the point that you file bankruptcy with the courts. Note- there are limitations as to what collecton activities a lender can do, ask your lawyer. Hope this is helpful.
2006-08-30 17:49:38 · answer #2 · answered by cpt_waske 1 · 0⤊ 0⤋
If you file for bankruptcy, the creditor will still charge off the debt, but cannot demand payment due to the bankruptcy protection afforded by the discharge.
Even if you make token payments towards the balance, the creditor is forbidden from demanding payment. You have to call the creditor and verify that your account has been paid in full. The creditor will report that the debt has been paid and charged off - meaning that there will be some impact on your credit.
2006-08-30 17:55:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Certainly it is. It happens every day.
When they say they've charged off or written off the debt, it's primarily an accounting transaction that lets the lender put the money in their "expenses" column instead of their "assets" column, which gives them a tax advantage (less net income).
It's not the same as forgiving the debt. Not even close. You still owe the money. They can still try to collect from you, and they can still sell the debt to a collection agency.
2006-08-30 17:32:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
charged off just means that the company had taken a loss on what you owe them. They still have the right to collect the money, or even sell your information to another collection agency which at that point will start a new 7 years on your credit report from the day the new company purchased your information
2006-08-30 17:29:36 · answer #5 · answered by jeangwendolen 1 · 0⤊ 0⤋
Legal yes, as you still owe the money. Ethics have little to do with that.
Charging off bad debts is a bookkeeping thing they have to do if the debt is past a certain date, otherwise they have to show it as income (and pay taxes on it).
2006-08-30 17:29:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋
yes it is unfortunatly. i worked for a bank so i know exactly what your talking about. if it gets charged off its because many many days went by and you never took care of it, so they charge it off (meaning-no payment recieved) but then they can demand payment and if you do pay they will report it as a paid charge off.
2006-08-30 17:29:06 · answer #7 · answered by humorme! 3 · 0⤊ 0⤋
Call the credit bureau and tell them you wish to dispute it. They all have a procedure for this sort of situation. It's in the credit bureau's own interest to have accurate information.
2006-08-30 17:29:16 · answer #8 · answered by michinoku2001 7 · 0⤊ 1⤋
Yes, it's both legal, and ethical. Why wouldn't it be? You owe someone money, and you haven't paid it. As long as they don't resort to leg-breaking, they have every right to report that you don't pay your debts, even as they try to force you to pay this one off.
2006-08-30 19:50:03 · answer #9 · answered by Nathan 3 · 0⤊ 0⤋
put yourself in there shoes.
2006-08-30 17:26:51 · answer #10 · answered by snoogans 5 · 0⤊ 0⤋