Can a collection agency sue for a 'charged off' debt?

If the debt has been cancelled, no; if the debt has been charged off, yes.

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

No, as they are the legal agent of the original Creditor and the arrangements made with the collection agency are binding on the original Creditor.

Pay off your debt. Pay off your debt. Pay off your debt. Pay off your debt.

If they obtain a judgment against you, some state's houses are protected

yes the debt does not go away, the bank simply sold the debt to an outside collection agency.

Yes, the term is used to indicate a debt being written off as uncollectible by the original creditor. The debt however remains valid and subject to collection by a collection agency working for the original creditor or a third party that buys the account.

Yes. A charge off simply charges off the debt with the original creditor but just because it is charged off the creditor still can take action to collect on the debt.

It is unlikely that the account was "sold" to a collection agency. Rather, the agency was contracted to recover the debt. The "charge off" of the account only affects the original creditor, and represents a loss reported against the company's taxes. If the collection agency has attempted to recover the debt and has been unable to, the original creditor will likely pull back the account and refer it to another agency in hopes of greater success.

Yes, it is perfectly legal for a debt to be sold and for the debt to continue to accrue interest and penalty charges.

When a collection agency takes on a bad debt, in many cases they are "puchasing" the debt from the original creditor. When you then pay off the collection agency, your money will stay with that collection agency. This is the most common scenario, but some companies do have their own internal collection agencies (Capital One, for example, has their own collection subsidiary in Idaho - the Westmoreland Agency). Hope this helps!

It would depend on the state laws that are apply to collection agencies and collection procedures. In many states they can add fees incurred for the collection of a debt and interest on the amount of the debt itself.

Yes the second collection will be placed on the credit report. But they will remove the first collection agency off the report. In some states it is against the law to be double billed by two collection agency for the same debt.

Normally 30 days after it is sent to a collection agency if you don't ask for validation or 180 days which is considered charged off account.

no.This is in violation of The Fair Credit Act and The Fair Debt Collection Act.Report this to the FTC and your state attorney office.then look for a lawyer to sue them.

Yes, because all that charged off debt is just charged off by the original lender, not for the entire world. They will sell it for some amount of money to collections agencies in orde to get something and write off the balance of the debt on their taxes as a loss which you have to in turn enter charged off debt as income unless you pay it back. The collection agency starts the process all over and the seven years starts all over too, to infinity and beyond...It never goes away unless it is legally disccharged off through cp 13 or 7 bankruptcy unless is a student loan, federal IRS debt, child support, judgment, etc...

Yes, A charge off simply indicates that the debt has been written off the creditor's account as uncollectible. The debt can then be sold to a collection agency for pennies on the dollar. The 'buyer" of the debt will then pursue collection action by whatever means is allowed by the laws of the state where the debtor resides. Such action would be phone calls, letters and in many instances a civil suit for the debt owed.

Yes, the charge off is entered by the original creditor, and the collection fee is a separate debt.

Once the debt. has been charged off and sold to a outside collection source you must talk to them.

is it against the law to start collections on charged off accounts. I beg to differ but you can also look this up. It is not illegal to start collection proceedings on charged off accounts, most businesses will write debts off to bad debt BEFORE placing them with a 3rd party collector such as an attorney or collection agency. Once payment is made the money is posted to bad debt recovered to offset the write off. This is done to remove the bad debt from their books and also for tax purposes.

Yes. Being "charged off" is merely an internal accounting term to indicate that the amount owed should not be carried as an asset of the company. It does not mean that the debt itself is discharged. Companies will charge off debts because they cannot keep inactive accounts on their books indefinitely. But after they do charge them off, they either sell them at a discount to collection agencies, try to collect on them themselves, or forget them. But they can sue. If a collection agency comes after a debtor on a charged off debt, the debt can probably be settled for a lot less than the real amount. This is because the agency probably bought the charged off debt for less than half of the amount. If the debtor offers an immediate payment of say 75%, the agency still makes money on the difference between what it paid for the debt and the amount it gets from the debtor. Agencies want quick money with the least effort, so if it can make one phone call or write one letter and get more money for the debt than they paid for it, they will do it.

It will show on your credit report where your bank loan was "Charged Off". This means the bank wrote off the money and gave up on collecting it. However they can sell that debt to a collection agency to try and collect it. It will show on your credit report for 7 years.

Illegal! Only adults can accrue debt. Children must have guarantors, or someone that signed off on the debt.

Charged off accounts can still be sold to third-party debt collectors for collection. Nothing precludes them from attempting to collect on a charged off account. The collection agency that is contacting you would have to be licensed in the State of Maryland to conduct business. You can obtain licensing information on the Maryland Commissioner of Financial Regulation website.

Collection agencies are usually retained by the establishment that you owe the defaulted debt to, if the borrower ( person in debt) does not want to work with the collection agency handling their debt, the collection agency will then document the account as a refusal then send the account back to the original lender then they will garnish your wages until the life of the loan is paid off.