When a debt is charged off?

Question

When a creditor charges off a debt, and they tell you that they have no more dealings with it. Told me that they could not pull it out of collections and settle with me.
Can this debt go back to the creditor and they will sue?

It is a credit card debt, for $8000

Answer 1

Two things...either they sold it to the agency or they have a contract with the agency.

For example..I am a Collection Agent and the agency I work for takes accounts from creditors and assigns them to me. Those accounts can not be withdrawn for just any reason unless they creditor wants to pay a fee. Its contracting.

There has to be a good reason for them to pull the account...like it was placed in error it was paid prior, we had the wrong guy or something like that.

Surely not...the guy is willing to pay now. NOWAY!! I want MY fees on this accoun. This is MINE!

Creditor can not play with their greedy a$$ Collection Agents. Trust me.

So those are the two reasons why they cant get the account back.

You know...I sued many creditors who were my clients and won on accounts that they tried to back door me on. Because its my time, effort and money and believe me those things dont come cheap. We pay for postage, ink, paper, phone bill, electricity, reports, skip tracing, attorneys, etc. I put my time and efforts. They an not just pull the plug when they feel like it. So almost any agency contracts before they work an account.

Anyways, enough excitement for one day...so now moving on to what you should do about it.The fact that its with an agency is not good for your credit but its good as far as you being able to settle for a less amount. Call the collection agent and make a deal. Start by offering 30% and do not go higher than 60%. They say no than tell them sorry than I cant pay cause thats all I can do. They will call you back close to the end of the month when they are frantic to make thier quotes.

Be sure that you get your deals in writing before you pay them anything at all. Try and make them throw in a deletion off your credit report. NEGOTIATION and good, firm communication is the key. Be sure to get that in writing as well.

Plus before you go off and deal with any collection agent or at all...educate yourself on your writes. Look up the FDCPA, that stands for Fair Debts Collection Practices Act. And than begin negotiating with them so they know that you are not a "less intelligent consumer" and they call "pull the wool".

And all that internal external stuff....ahhhh. NO. Major creditors "internal" is a call center not a collection agency. Those are reps not actual bill collectors. They call and ask you to pay your bill. They have to do their due diligence before they assign or sell it to the "external" and that IS the third party collection agency. There is no 1, 2 and 3 there is a 1 and 2.

Doesnt matter if the account is with an attorney. Accounts dont get turned over to an attorney...the attorney gets hired by the agency. The account still belongs to the agency the only difference is that they have to cut the pie in half...the creditor and the agency but the agency has to share a piece of their pie still with the collection agent and the attorney the agent hired.

They can not sell or pass the debt over and than sue as they do not hold the account anymore. The last person holding the account may sue if they want.

Good Luck

Answer 2

No- what will happen once an account is charged off is that the collection agency will go after you and try to get either the full amount you owe, or a settlement amount. If you don't give the collection agency anything, they will put a judgment against you, which means they will contact a law firm, who will then serve you with legal papers and you'll have to either settle or make arrangements right then, or appear in court. If you don't do either, they will garnish your wages (in Colorado, they're allowed to garnish up to 70% of your paycheck, but I'm not sure about other states.) That's basically how that all works.

Answer 3

I don't believe so. It really all depends on the creditor and what the amount is. Are you talking about a bank account that was closed at a negative balance? Usually, when you fail to pay something, it is reported to a collection agency who tries to claim the funds from you. But if the amount wasn't that substantial, like under 500 or something, it wouldn't be worth it for the company to sue. I need more details about what you had charged off and what the amount was.

Answer 4

The creditor can and regularly does attempt to hold mutually the debt, except the Statute Of limitations has expired on the debt, long after it somewhat is been charged off with the two an in-living house sequence software or traditionally with a third-social gathering debt sequence provider. via fact the unique settlement for the debt, on your case a credit card settlement, grew to become into no longer venerated, the account stability might nicely be asked paid in finished. A creditor will now and back settle for a partial fee of the debt and the account would be pronounced as "settled cost-off". The cost-off will proceed to be on your credit checklist for seven years plus a hundred and eighty days from the date of the 1st nonpayment under the honest credit Reporting Act.

Answer 5

It can mean a couple of different things.

1. They could have turned it over to and internal collection department.

2. They could have turned it over to and external collection agency.

3. They could have sold the debt to a 3rd party.

In the first two cases, they could probably do something about settling, but probably will not. In the last case, it is totally out of their hands.

In the first two cases they can sue.

Obviously if the have and internal collection department they could then turn it over to their legal department and sue.

If they use and external collection agency, they can take the debt back and then turn it over to and internal or external legal department.

In case three, the new holder of the debt is the one that would sue.

Learn your rights. Visit:

http://www.creditinfocenter.com/rebuild/debt_validation.shtml

Answer 6

They sold it to a collection agancy. Now that agency owns it, and yes they can sue, and somethines they really do. The agencies but charge-offs for pennies on the dollar, so negotiate with them. They may be willing to settle.

Answer 7

It is an accounting function.
They no longer think they are going to collect it, but that doesn't mean they are going to stop trying nor does it lessen your obligation.
Once they turn it over to collections ( a collection agency) they are out of the picture but you aren't.

Answer 8

I think it means that they have sold your account to a 3rd party, a collection agency. Now you will only be dealing with the collection agency.