Can a Credit Card charge off the same account multiple times?

Question

I have CA that has been charged off every month for the last 4 years. Every month they add more penaltys to the amount owed and charge it off again. dated open 05/2000, date reported 3/2007, date last payment 06/2001, date closed 10/2001, charge off amount $570. Balance $1242. date of last activity 02/2001. Help!! How is it possible to have an account closed but every month it has a new balance. Also how can the date of last activity be diferent that the date of last payment. Isn't a payment an activity?

Answer 1

The original creditor can update the charge off on a monthly basis if they want. They can also continue to include interest and fees on the account as long as it was in your contract with them (probably was).

A collection agency cannot show the account as a charge off and they can keep adding interest and fees if it is in your original contract with the original creditor - And - if your state allows it.

The date of last payment and the obsolescence date (what they may be showing as the last activity) can be two different dates.

The reporting SOL runs for 7 years from the first time you became 30 days late and never brought the account current leading to the charge off.
You had probably made a payment after that first 30 day late, but you did not bring the account current so the SOL would continue to run from that first 30 day late.

Answer 2

Be cool. They do this to freak you out to make you call them up and pay. Bottom line: they aren't going to sue you for $500-$1200. Period. After seven years from 6/2001 or 6/2008 DEMAND that the three credit bureaus erase this from your file. Threaten to sue. Then threaten again.

If the universe turns upside down and they do sue you and win a judgement, you will owe $570 + reasonable expenses. Not $1242.....be cool, friend, and wait a year. paying the money won't help at all..