wondering if a creditor already has put your account on charge off on the credit report, does this mean they already sold your account to a collection agency? i got a letter in the mail stated if i did not pay they would refer my account to a collection agency? i already thought it was giving to a collection agency since it was already charged off. what is the difference?
Just because an account is charged off, doesnt meant that the creditors in house collection is trying to collect the debt. Once this account accrues to be so many days old they will probably forward it off to a collection agency. Most inside collection dept do not have the manpower or the know how to collect the debts after they go this far. You have several different problems it sounds like. First of all, since the creditor is reporting that you are charged off, you will now recieve a second mark from the collection agency stating that you have a unpaid account with them on your credit report. This is what happens in these situations.
The differnce is that they will both attempt to ruin your credit using the CRAs as their weapon of choice.
Every ACTION has a REACTION. Nobody can ruin your credit without your own ACTION. Unless it's a legitimate case of Identity fraud or mistakes, which can be fixed. Most however are a direct result of your ACTION. They REACT.
