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Can a creditor reopen an account once it has been reported to the credit agencies as a charge off?
Wiki User
∙ 8y ago
Most creditors will say no. What can be done: 1. the creditor can change the rating on the account if you have proof that it was paid on time with the borrower getting a letter stating that they did just that. Follow up with the 3 credit reporting companies to make sure this is done.
2. the creditor can start a whole new account--that will allow you to pay this one on time, giving you a 2nd chance.
KEEP ANY LETTER YOU GET THAT CHANGES YOUR REPORT AS THE POSSIBILITY THAT YOU WILL NEED IT AGAIN IS VERY HIGH!!! On a charged off account, most corrections have to be done by hand--alot of times this is not done (for whatever reason) and your letter is the only proof of what was done.
Wiki User
∙ 8y ago
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Can you dispute a charge off account?
No. Once an account has been in default for 180 days, the creditor by law must list it as a charge off.
You had a credit card account which they charged off and sold to a collection agency ca Now you have that charge off which carries a balance and a CA collecting on the same debt What could you do?
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.
What is the difference between pre-charge off and post-charge off accounts?
A pre-charge off is when the creditor is giving the debtor notice that the account is in default and will be sent to collections if a payment agreement is not made by a specified date. Post-charge off is when the account has been sent to collections, sold to a third party creditor or referred to a legal firm for further action.
What is the definition of the term 'charge off'?
The term "charge off" is used when a company or creditor clears a persons account due to lack of payment at loss to the company. No further charges can be applied to the account.
At what point does a creditor decide to charge off an account?
The original creditor is required by law to charge off an account after a 180 day deliquency. In most instances the account is sold to a third party collector. The collection agency will continue collection procedures. If an equitable arrangement cannot be made with the debtor, the collector may refer the account to an attorney who may decide to file a lawsuit.
Can a collection agency charge fees or interest in new jersey?
Collection agencies can't add charges. Fees and interest charged to your account are per the terms of your contract with the creditor.
Can you dispute a charge off account?
No. Once an account has been in default for 180 days, the creditor by law must list it as a charge off.
Can a creditor remove a charge off?
Yes, a creditor can remove a charge off from your account and your credit reports. Credit bureaus can also delete charge offs from your credit report if they are disputed and not verified.
You had a credit card account which they charged off and sold to a collection agency ca Now you have that charge off which carries a balance and a CA collecting on the same debt What could you do?
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.
What is the difference between pre-charge off and post-charge off accounts?
A pre-charge off is when the creditor is giving the debtor notice that the account is in default and will be sent to collections if a payment agreement is not made by a specified date. Post-charge off is when the account has been sent to collections, sold to a third party creditor or referred to a legal firm for further action.
What is the definition of the term 'charge off'?
The term "charge off" is used when a company or creditor clears a persons account due to lack of payment at loss to the company. No further charges can be applied to the account.
Are creditors compelled by law to report a settlement account as a charge off?
The account will be reported as "settled in full / was charged off"
At what point does a creditor decide to charge off an account?
The original creditor is required by law to charge off an account after a 180 day deliquency. In most instances the account is sold to a third party collector. The collection agency will continue collection procedures. If an equitable arrangement cannot be made with the debtor, the collector may refer the account to an attorney who may decide to file a lawsuit.
Is it legal for a creditor to charge late fees on an account AFTER it has been discharged in chapter 7?
Provided the account was indeed discharged and the late fees were generated after the discharge, the answer is no.
Why original creditors sale accounts to a collection agency?
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
What can you do if a credit card issuer is planning to sue for an account that was never charged off or reported to the credit bureaus?
Any creditor/lender may file a lawsuit against a defaulted account at any time. The account need not be designated a charge off nor be reported to credit bureaus before litigation can be pursued. The best choice is for the debtor to seek advice from an attorney who is qualified in creditor and debtor issues (bankruptcy attorney). Most attorneys offer a free or minimal fee consultation to discuss the options. If the debtor chooses not to seek legal advice, he or she should research the laws of their state to discover what personal and real property can be exempted from creditor attachment.
Are there no regulating rules to control the buy outs of charge-offs etc by several collection agencies?
No. There are laws regulating how a debt is collected. The original creditor can sell an account, for example that is $5,000 to a third party for any amount they agree on. Even if the account was sold for $500 the collection agency can get the entire $5,000+ or at least try.
