No, a CA has full legal right for collection if they have purchased the debt from the credit issuer, or have received "agency rights" to collect. "Charging Off" a loan is an accounting procedure, it allows the business to charge the amount of "(net)bad debt" as a business expense, and negate some income tax liability. The "seller" of the debt does give up their right to collection activity. A CA is essentially buying the business contract you entered into when you took out credit, and used it. They are entitled to the "rights" of the contract, which includes collection activity. The debt does not "go away" simply because it is sold, there is a misconception out there that it does after Charge Off. What CANNOT be done is that Company ABC "charges off an account, and sells that debt to CA XYZ, and THEN Company ABC tries to collect on the debt, this is highly illegal.
