Can a collection agency sue you for a charged off credit card?

Answer 1

If a collection agency has either purchased the debt from the original creditor, or obtained an assignment of it from the original creditor (to collect on its behalf), generally, it can sue for collection.

Answer 2

Of course they can. Their are many laws to protect you from collection agency. They can't threaten you in any way, including threatening to garnish your wages, put in you jail for unpaid debt, and sue you if they do not intend to sue. They cannot contact anyone else about your debt. If you send a cease and diseast letter asking them them not to contact you, then they can't call you anymore. They can only call you one more time, telling you they will no longer be contacting you, or they are going to take legal action like a lawsuit. Once again, they can't say they are going to sue you if they do not intend to sue. You can file a complain with the federal trade commission.

Answer 3

Yes.

As discussed many, many times here; Charging off or Writing off a debt is a required accounting entry. It is how the one you stiffed (that is the bank), shows the asset it was to receive (the money you we're to pay), and it expected or had already recorded as income, will not happen, and instead it has an expense, or a loss.

It does not forgive the debt, relieve the debt, excuse the debt, say they won't try to continue collecting the debt, etc...it just says that it is a bad debt.

Answer 4

Yes, although, from your question, depending on the sale, it may be the collection agency that is actually suing you. If they just hired the collection agency 9didn't actually sell the debt), then the credit card co is actually suing...but they hirted the process out to someone else.

When the collection agency buys (or anyone) buys the rights to collect a debt from a credit company (or anyone else), they get all the rights the one they are buying it from had. It makes no difference to you, the debtor, on what you owe or any of your obligations....the terms of your debt remain the same. Just who it's owed to changes.

Better read and understand the terms of your debt agreement...any costs the holder of the debt incurs to get paid, like suing, hiring agencies, etc., because you failed to perform on your agreement as you promised, become expenses they can (and do) charge to you.

Answer 5

The charging or writing off of a debt is only a required accounting entry by the creditor.

It does not effect you, or change the amount you owe, or that you owe it.

It does not change any of the legal methods to force collection that were available before making the entry. It does not change any of the creditors rights, or change your obligation in it. The debt is NOT forgiven.

All it does is make the creditors accounting statement recognize that an asset (your receivable) that it expected to realize, and already recorded as income, is not going to happen. they are taking the charge to their books for the expense of your not paying, or that it is now considered unlikely you will ay, and the asset does not exist (or in bank terms, is no longer productive). When the charge off occurs depends on many things in accounting parlance...most companies actually establish an account for expected bad debts (an accrual) as a current charge against sales, (expecting some to go bad), and adjust that account on experience...without having to do much on any particular account.

Answer 6

Yes, the term "charge off" does not indicate that the debt is uncollectible.

Answer 7

Of course you can. You can sue anyone or any company. Now will you win... that's the question. Do you have a more specific question?

Answer 8

No.