Once an account is settled, as with a charge off, the creditor must refelct that the account is settled. Failure to do so is a violation of the Fair Credit Reporting Act, a federal law. Dispute the bad reporting first with the credit bureau (Equifax, TransUnion or Experian). If they fail to change it within 30 days, file a formal complaint with the Federal Trade Commission (FTC) who is their regulatory agency. * Yes. A charge off does not indicate a debt is settled or not fully collectible. A charge off simply indicates that the original creditor is clearing the account of the books and referring it to a collection agency.
That is perfectly legal. The term "charge off" does not mean that the debt is not still valid and fully collectible.
It means the original creditor has given up the account and sold it to a collection agency. It does not mean the debtor is relieved of the debt. Someone wants the money and they will get it, somehow.
The usual procedure is to contact the creditor by phone, and follow up the phone contact with written correspondence outlining the terms that were agreed upon. You can find a sample letter of that type of creditor/debtor correspondence at http://www.fair-debt-collection-com
7 years from the date of first delinquency
The only true way to know is either try contacting the creditor or keep a close eye on your credit report. If the account isn't showing on your credit report and you receive no coorespondence from a creditor, it can be very difficult. If you suspect an account is in default of contract and you cannot find information on the account, understand that if it isn't initially reported, the chances of it being reported are not very great.
Yes, a "charge off" does not indicate that the debt is no longer valid. The creditor has several options on how to collect monies owed after the account has been charged off.
The account will or should be changed to read "included in bankruptcy". It will still however remain on the report until the seven year time limit expires. However, the account is charged off for the amount that wasn't collected and reporting that would be proper too. (Charge off is how the creditor reflects that you didn't pay and he had a loss on the account...that it was by bankruptcy makes no difference...actually worse).
yes you can.
That is perfectly legal. The term "charge off" does not mean that the debt is not still valid and fully collectible.
It means the original creditor has given up the account and sold it to a collection agency. It does not mean the debtor is relieved of the debt. Someone wants the money and they will get it, somehow.
A debit card is connected directly to a bank account. The money being charged must be present in the account. A credit card is used with a promise to pay the creditor in the future.
The usual procedure is to contact the creditor by phone, and follow up the phone contact with written correspondence outlining the terms that were agreed upon. You can find a sample letter of that type of creditor/debtor correspondence at http://www.fair-debt-collection-com
No. When an original creditor sells a charged off accounts to another company. I asked the Credit bureau to investgate. However, the creditor is unable to remove it from my credit report. does this start the 7 year clock ticking all over again from the date the credit bureau investigate?
Collection agencies can't add charges. Fees and interest charged to your account are per the terms of your contract with the creditor.
If payments are current it would not be advantageous for a creditor to charge off an account nor in some cases legal. If there are arrearages on the account that is a different issue, as the account would be considered in default and property that was used to secure the loan could be seized.
Yes, if the creditor sues the debtor and is awarded a judgment, the judgment can be executed as a lien against real property owned by the debtor. A "charge off" does not mean a debt is not valid nor subject to collection.
7 years from the date of first delinquency