The original debt was a credit card (limit $500.00) that due to late and slow/missed payment resulted in a debt of $1078.00. The original company charged off the debt in May/Jun 2005. I am now being taken to court by who purchased the debt from the credidt card company. I live in Kentucky. It is my understanding that they cannot do this.
2007-01-04 01:37:02 · 7 answers · asked by rottenrotts3 1 in Politics & Government ➔ Law & Ethics
I concur with Mistress - get a Kentucky lawyer. It might be that there is a statute of limitations in effect here - that the collection agency has to get to you before 2 yrs (or so...) lapses since the charge off by the original creditor.
In anycase, you may want to contact the collection agency and see if there is a payback plan you can do, and if they can positively make notes to the credit agencies if you show responsibility in repayments. But before I would contact them, a lawyer is the best and most neutral party to contact, so that you know your rights. Also, if you have a letter from the original company that states that your debt is "clear" or "charged off", that may be enough to stop the collection agency.
Good luck to you!
010407 8:44
2007-01-04 01:44:23 · answer #1 · answered by YRofTexas 6 · 0⤊ 0⤋
The short answer is yes! The 1st company charged it off because they sold it to the 2nd company. When the 2nd company could not collect they also sold it to the 3rd company and so on and so on. YOU STILL OWE THE DEBT. You don't get off that easy because the 1st company is no longer involved. The thing to do is call the company that now has the debt and negotiate with them. Tell them you can only afford $500.00 and see what they say. They may take it instead of going to court. If you go to court you'll be responsible for the debt and all court fees. Also, this debt is on your credit report as a new bad debt/delinquency each time it is sold.
2007-01-04 01:43:58 · answer #2 · answered by Anonymous · 1⤊ 0⤋
When a company charges off a debt, it's done basically for accounting purposes. It does not mean that you no longer owe the debt. You still owe it. A company can sell their delinquent/charged off accounts, and it’s a common practice. Once they sell the account to another company, the other company then owes it and they can collect the money from you.
Now if the first company agreed to settle the account for less than the balance due then that’s a different thing.
2007-01-04 04:33:54 · answer #3 · answered by kp 7 · 0⤊ 0⤋
Depends on Kentucky laws. You should send the new company a copy of your settlement letter from the company who charged off the debt. That is your proof that your obligation was discharged.
2007-01-04 01:39:24 · answer #4 · answered by kja63 7 · 0⤊ 0⤋
if they are taking you to court, I would bet $ that they think they can win (and costs too)....
if you didn't file for bankruptcy and discharge the debt, you probably still owe it to the original creditor or their successors (i.e. the people who purchased the debt).
Might want to make them an offer in compromise, to close the case. If you really do wind up in court, you could be on the hook for attorney fees, court costs etc. in addition to the $1078!
2007-01-04 01:41:40 · answer #5 · answered by silentnonrev 7 · 1⤊ 0⤋
Talk to a lawyer (most will give a free consult). You may have a loophole, but companies do that all the time so I'm sure there's some fine print somewhere that makes it legal for them to do so...
2007-01-04 01:38:58 · answer #6 · answered by Nasubi 7 · 0⤊ 0⤋
Check your state law. Some states allow it.
2007-01-04 01:44:27 · answer #7 · answered by Anonymous · 0⤊ 0⤋