I am receiving bills/collection notices from other than the originating lender stating they now represent the loan and wanting to collect. The original loan was about 9 years ago and as stated above was "charged off" 8 years ago. What is my obligation now?
2006-10-31 08:43:23 · 5 answers · asked by poptart011365 1 in Business & Finance ➔ Credit
It is illegal for a credit agency to re-age a debt. There have actually been large lawsuits that have been paid to the person who owed the debt from the creditor. Depending on which state you live in, the statue of limitations may still be open. This means that they can sue you for your owed debt, but should not be still reporting it on your credit report. The link below shows the statue of limitations by state. You can contact the new creditor and ask for proof of you owing the loan and proof that the original creditor gave them permission to collect on the loan. They must provide that info to you. You can find sample letters from the link below as well.
2006-10-31 13:17:30 · answer #1 · answered by Mariposa 7 · 0⤊ 0⤋
Depends on what your states statue of limitations is. A charge off is basically the company writes it off as a loss. They can and will sell the account to someone else so they can try to collect and that is legal. You are still responsible for the money that you borrowed, but if the statue of limitations has expired, you are not required to pay it. To find out more about the statue of limitations for your state, visit your state website, or your state attorney generals website, which the link below will help you find very easily. The other term used in this case is time-barred debt. Legally you may not have an obligation to pay, but you did borrow the money, and if you feel the need to pay off the debt, you can tell the company trying to collect, if it is a time-barred debt, that you would like to make payment arrangements. You can also find more info on how to deal with creditors at the FTC website. See link below
2006-10-31 08:56:03 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I'm not sure what you mean by "charged off", but if you took out a loan and still owe on it, this just means that the lender passed the loan (and interest income) on to someone else. Now you owe this new lender, but I would check with the original lender to make sure it is legitimate.
If you no longer owe on the loan, then you need to straighten that out with the "new lender" and your original one.
2006-10-31 08:46:09 · answer #3 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
NONE
Charged off 8 years ago.. they can only collect until 7 years IF you havent paid anything since
AND
It should be off your credit reports after 7 years from the last date of payment
look at your 3 credit reports
which you can yearly obtain FREE
2006-10-31 08:53:26 · answer #4 · answered by Mopar Muscle Gal 7 · 0⤊ 0⤋
You would have to provide proof that the debt was charged off. If no proof. The debt can be simply written of the books but sold a later time.
2006-10-31 08:53:58 · answer #5 · answered by lsparamus 1 · 0⤊ 0⤋