If you can prove it with receipts, cancelled checks or other documentation go to a lawyer and sue for harassment. Make it a really big one and that will AT LEAST get them off your back, plus you might get a little money to buy something special for yourself. Collection agencies and others who assume that everyone is guilty until proven innocent need the occasional wake-up call from a pro-active citizen.
yes
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.
Yes. When creditors charge off accounts they send them (or sell) to a collection agency. The collector can request the debtor's credit report show that the account has been turned over for collection procedures.
Yes, the charge off is entered by the original creditor, and the collection fee is a separate debt.
Charge offs are accounts that have been written off by the creditor as uncollectable. The debt owed is still valid and can be collected on either by the original creditor or by a collection agency. You can only erase charge offs by disputing them to the credit bureaus or negotiating the removal by the original creditor.
Collection agencies can't add charges. Fees and interest charged to your account are per the terms of your contract with the creditor.
No ... you have the proof that the debt was settled.
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.
If the original creditor charged interest then the collection agency will continue to accrue interest at either your states legal rate or whatever you agreed to in the original contract until the debt is either paid or sold to another collection agency or placed with an attorneys firm for legal litigation.
Yes, reporting to your credit by a collections agency does not effect the reporting originally made by your creditor. It most normal cases you would see the original creditor having reporting the account as a "charge off" regardless of any reporting made by a collections agency afterwords.
No they can't it's against the law. However the original creditor is allowed to add collection fees as long as the underlying contract allows for it. For example medical intake forms often allow for interest and collection fees.
In general, a charge off alone does not give a collection agency the right to place a lien on your house. However, if the debt is taken to court and a judgment is obtained against you, then the collection agency may be able to place a lien on your property as a way to secure payment. Each state's laws regarding liens and debt collection can vary, so it's important to consult with a legal professional for advice specific to your situation.