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When does a credit card issuer charge off an account after the account has been closed?
Usually 180 days after DLA. Be advised a charge off does not indicate that the debt is not valid and subject to collection procedures.
Can a collection agency sue for a 'charged off' debt?
Yes, the term "charge off" does not render the debt invalid or uncollectible.
Are you still liable for a debt after a credit card company charges off your account?
Yes, a charge off does not mean a debt is invalid nor uncollectible. The term is used by creditors to indicate a debt that they believe is not collectible under normal procedures and they are clearing the debt from their books for taxation and operational purposes. The OC will then refer (or sell) the debt to a collection agency or collection attorney for further action.
Can your bank account be levied for a credit card charge off?
A charge off does not define the debt as invalid or uncollectable. It is a designation used by creditors to indicate the debt is being removed from their normal accounting methods and sent into collection action. If the creditor sues the debtor and receives a judgment (they always do) the judgment can be used as a levy against the debtor's bank account.
What does a 0 balance charge off mean?
A 0 balance charge off means that the debt company has given up trying to collect the debt. It may sound good, but the effect on the credit rating is very bad.
How little does your credit card debt have to be for the credit card company to charge it off as uncollectible?
any amount due them
How do you negotiate with the credit card company after the death of the card holder?
The debt of the cardholder dies with them !.. Simply write to the company and inform them that the card-holder is deceased. The company will do their own investigations to check that the information is true - and may require you to send a copy of the death certificate, before they write off the debt.
Can a credit card company charge monthly finance charges after the death of the card holder if someone is trying to pay the debt off?
Yes. The question might possible be is anyone obligated to pay the debt at all? If the the deceased person was the only account holder, no one else is responsible for the debt; except posssibly the deceased's estate (if there is one). If there is a surviving spouse and the couple lived in a community property state, the spouse might be obligated to repay the debt(s)... Macky(macky83@juno.com)
Does the family of a dead card holder have to pay off the debt?
Unless they are a cosigner on the card (such as a spouse), the family will not be personally responsible to pay off the debt. However, the laws of your state MAY require the debts to be paid before any inheritance can be distributed to the heirs.
Can a credit card company still continue to charge interest if the debt has been charged off?
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.
If you have a card being charged off is your spouse responsible for the debt?
She is only responsible if she is an actual joint account holder. Having a second card on the account does not make her liable for the debt. The person(s) making the original contract is the one who is the sole debtor
If are paying off your parent's credit card debt since his death is the credit card company responsible for taking off all finance charges back to the time of death?
Why is the debt being paid? Was the deceased the only account holder? These things are very important, because ONLY the account holder is responsible for credit card debt. There are a few exceptions, but generally even they can be voided via the appeals process. Therefore, the interest charges are only valid if the debt is actually valid. The party involved might wish to consult an attorney concerning this issue. If the debt was part of the probated estate it should have been paid through the court. An authorized user is NOT responsible for credit card debt of a deceased person. The exception would be if the person continued to use the card after the account holder's death, in which case they could be held liable for those charges only.
When does a credit card issuer charge off an account after the account has been closed?
Usually 180 days after DLA. Be advised a charge off does not indicate that the debt is not valid and subject to collection procedures.
You owe Americredit for a car you returned can they charge some of that debt off?
They can charge off all of that debt, but it in no way remediates your repsonsibility to pay. All "charging off" a debt means is that it has been removed from the lender's active books. Charge off does not forgive the debt, only bankruptcy can do that.
Can a secondary card holder remove himself from an account leaving only the primary card holder's name?
Usually, a new card is issued in the primary card holder's name. Usually both parties on a credit card have to sign off to eliminate the secondary card holder. Your credit card holder can help you with this.
If a credit card has charged-off balance it means that you don't have to repay the debt?
You don't have to repay the debt but u are required to report the amount of the "charge off" to the IRS and pay taxes on it when you file your tax return
Does the interest and finance charge stop each month after a credit card charge off?
No - I am a collector and service primarily unsecured credit card debt. Per the cardholder agreement that was signed with the credit card company, the account holder is often liable for a LARGER interest rate after an account goes into collections. This may not always be the case, but I rarely see credit card collections that have interest rates lower than 18%. Finance charges are not often applicable when the tradeline has been closed and charged off into collections.
