Is this fraud?

Charging off a debt is an accounting procedure. What you owe the company is an asset to them that they carry on their books as an asset for accounting purposes.

When you default, they carry it still as an asset because they can still possibly collect. Eventually, as it becomes more clear that you are not going to pay them back, they charge it off, and they no longer carry it as an asset on their books.

If they are banks, they are ruled by laws which say when they have to charge it off. Other companies are governed by standard accounting practices as to when to charge it off.

But, you still owe the money and they can send the debt out for collection, sell it, or whatever. If they collect all or some of it, there are rules as to how to treat it on their books.

So, my answer to your question is that I do not see any fraud or any violation.

 

So, my answer to your question is that I do not see any fraud or any violation.
If a company sells a debt in 8/97, then charges the debt off in 12/99,

Thomas
++++++++++++++++
I think the question is :
They sold the debt in 97.
Is it legal to charge it off in 99 2 years after they sold it?********Another question how can they charge off a debt they no longer own?

 

If the debt was for say $2500 and they sold the debt for $250, they could then charge off the ba;ance.

Gib

 

But what if the debt was included in bankruptcy and listed as such on the CR? Can the OC still also note that it is a chargeoff?