Once the OC has charged off the account can they continue to pursue collecting the account themselves, or do they have to sell it to another collector? I have about $55K in charged off credit cards. 15K on one citibank, 12K on another citibank, 15K Discover and 10K Chase. All are charge off/bad debt on the credit reports. I am wondering will the OC's continue to pursue actions, legal and collections, or will they just sell it off? Thanks, snooz
Charge off is a book keeping term for taxes.They still will try to collect on it!Be prepared to be sued!
They can either collect on it themselves, assign it for collection (a collection agency collects on their behalf but they still own it) or they can sell it to a CA or JDB, at which point the OC no longer has any control over the account. As jj said, chargeoff is an accounting treatment, meaning they have written the account off of their books as an asset and consider it a bad debt. If they later collect on it, they simply reverse the writeoff, bring it back into the accounts receivable, and then book the payment against it.
You have totaled up quite an amount of CC debt. How long since the CO's? That said do you have a job, home, new auto? If you do be prepared for a suit. If not, not much of a worry, as unless you decide you want to negotiate and MAYBE be able to do a pay off for delete your credit is sunk for 7 years on credit reports. I was once in your shoes by about 6 times more, and managed to get everything taken care of one way or another. Me, I just WAITED it out until I got sued by JDB's and then when we went to court I helped my cases out a lot with learning how to go on the offensive. Gotta tell you it is a GREAT feeling not being under the gun by debt ... Woofer
So Woofer how do you go on the offensive? Isn't it too late once it has gone to the court stage. I know someone who is going to court in Tenn. next month and the CA wouldn't accept an offer made. So what can he do now?
Woofer, Thanks for the advice. All the Charge offs happened about Jan. 2008. I racked up the debt putting my wife through law school. I made too much to qualify for the true student loans, so we ended up with private loans, and paid a lot of it ourselves on CC's. We were doing fine until we moved to Las Vegas for jobs, and one citibank card did not get paid due to screwed up bank change. Citi trippled our rate on both cards, then Discover, then Chase. The all went to like 20% and payments went from 350 to 650. We decided basically to tell them to go F themselves over one missed payment over which NONE of them were willing to negotiate about. I would appreciate any advice on counteracting them on this. As of yet, I have only recieved one letter from one collection lawyer, Gugliemo and Assoc., I replied with one of the sample letters asking for verification and gave them 30 days, no reply, and they left me alone for about 3 months, then they are now sending more letters with 50% offers and such. The letters are no longer the collection type letters, they are all the Hey we'll make you a deal letters. Other than that, we recieve phone calls (that i forward to grandcentral voicemail) from some other collection agencies, Alliance One, and Calvery Debt Solutions? No demand letters, no collection letters, and no summons, as of yet. What do you think is my next step to fight these guys. I would have no issue with paying back the debt at the original rates of 6-8% but I am not going to pay them 22% for one missed payment. i want to fight these guys with a good arsenal, can you help me out?
If you have collection agents calling you without sending the required letters, you might have some FDCPA violations on your hands. Since your wife went to law school, she could start with some consumer protection cases: i.e. your own.
You have to do the work BEFORE you get to court. You need to get violations against them for later, and also make them PROVE that you owe them what they say you owe, and they have the legal right to collect on it. It also depends on who the CA and or JDB is and the history of the case of course as well. Woofer
Okay, your charge offs are fairly recent and they are already offering deals, so they probably think you do not have much. Unless you think you can pay the cards off I would just wait it out as your credit is already bad, and paying anything will just make the negatives date later unless you can wheel deals with pay for delete. IME I found that the older the case the less they as far as proof, and the more they are wiling to take a LOT LESS and be done with it and you get to get it off your credit reports many times. The other thing is the more it moves down the feed chain, you WILL RACK UP VIOLATIONS AGAINST THEM! : ) I could not pay off my debt as like you I fell behind then the rates and penalties just sky rocked and they would not work with me. I agree with the other poster... Have your wife learn consumer law and help you both out. : ) Woofer
For those charge off amounts prepared to be sued. Check your SOL in your state. It may only be smoke and no fire.
YOu should ALWAYS be prepared but IME with several of these creditors and for large amounts as well, you do not always get sued. Woofer
re: Central Financial Control Has anyone ever sued CFC and won ? I live in Texas, a surety bond of $10k is required, has anyone tried to make a claim on their bond ?
You need to start a new thread with the company name in the title so it will get the attention it deserves, instead of asking on a thread about a different topic.
