Hi Folks, Question for anyone... Once a creditor charges off an account, can they still try to collect on that account, and is is considered null and void. What I want to do, is dispute an account, that has been charged off, can they re-try to collect? Thanks in advance for all your help. You guys and gals have been great on this board.
Just because they charged it off does not mean they can't collect. They are allowed to by law. Charging it off gives them a tax break. If they later collect, they must declare the excess and pay taxes.
A term "charge off" only means that your loan is now considered a non-performing loan and is no longer an asset on their books. It usually only accellerates the collection efforts and makes the OC less willing to work out a payment plan. Other than damanging your credit, it means nothing positive to you.
http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&pgnum=1&postid=192747#post192747 -Peace, Dave
Welcome to the board Cmg0679. When a person misses a payment on an account the account becomes delinquent after 30 days. This would be a R2 in the Equifax code system. 180 days after that the account should become charged off to bad bet or R9 status in the Equifax code system. This is the law for accounts that were created after December 1997. Now there are two distinct issues here. First is the time for the account to drop off your credit report. From the charge off the account should drop off in 7 years. The second issue is the Statute of Limitations (SOL). This is how long the credit card company, or whoever they sell the dab bet to, has to sue for a judgments. This time is determined by the state you were in at the time the contract was created and varies from 3 to 10 years. http://www.cardreport.com/laws/statute-of-limitations.html
