Having your credit card or any other account 'charged off' or reported as a 'collection' means that your balence had not been paid satifactory up until that point. If you pay these derogatory accounts after they have been charged off or reported as a collection account, and one should always pay them off, then the company should report the new status to the credit bureaus. (this is something you should keep your eye on to make sure they are following protocal). This however, will not remove the fact that they were charged off or in collection at some point. It will simply show the charge off/ collection as being paid in full. With that being said, once the C/O or Collec. accounts are paid, they will still have a negative effect on your credit score for quite sometime, but will have a much lesser effect than having not been paid off. Also, if a derogatory account is not paid, often the company will report the charge off or collection multiple times for years to come. Each reporting will negativly effect your score and in turn, continue to bring your score down. Contacting the companies that are reporting you to the bureaus, either before they go into collections or after, is always a good idea to keep them from pursuing further action against you.
The collection company has probably charged interest sincethe day they received the account. The interest rate can differ from state to state on a charged off account. So yes, they can but that amount is not just for two months. You need to ask for a total breakdown on the account and see if the interest charged is correct.
It may be zeroed out w/ the orig company because they sold it to the collection people. DO NOT PAY COLLECTION AGENCIES ANYTHING!! google "fair credit act". lots of info
in most cases your original crediter, say sears, charged off your account and then turned it over to a collection company. the collection co bugged you and you paid the amount owed. in this way you did pay in full but prior to paying in full Sears charged it off as a bad debt. the collection company got 50 60% of the total amount you paid.
An active collection account is a debt that a company is attempting to collect. This continues until all avenues are exhausted.
Banks can sell debts to collection agencies at any time. The write off was likely done after the sale anyhow, and the 1098 was for the amount of money the bank lost overall.
No, a credit card company will not reopen a charged off account. They may choose to grant you a new line of credit, but this would be rare.
yes the debt does not go away, the bank simply sold the debt to an outside collection agency.
If a Payday Loan company hires a collection agency to collect on your account they can send your account to an attorney to collect the amount of the loan and any NSF fees that you have accumulated. However, it is stated at the bottom of your contract that if you close your checking account that the loan is made from, that you can be charged with fraud.
Yes, interest and fees are still charged when an account is sent to collections or purchased by a third pary collector.
You pay the collection agency.
Well after 6 years of not paying a dime to household bank the account has been charged off and the collection company is sueing me.
The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.
Trust me, they will find you. "They" being whatever collection agency takes on the account. It may take a little time, but you will be notified, either by telephone, mail or both.
Sounds like Karma to me.....
Once the debt. has been charged off and sold to a outside collection source you must talk to them.
Until your state's statute of limitations runs out on that debt.
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.
It all depends on the amount owed and the company owed to.
"Bad debt expense, or noncollectable accounts expense, or doubtful accounts expense. When does an account or a note become noncollectable? There is no general rule for determining when an account is noncollectable. once a receivable is past due, a company should first notify the customer and try to collect the account. if after repeated attempts the customer doesn't pay, the company may turn the account over to a collection agency. After the collection agency attempts collection, any remaining balance in the account is considered worthless." -Principals of Accounting book, page 394-
When a company writes off your loan, from an income and accounting standpoint, they are saying that your loan will not be paid. When this occurs, they will send a transaction line to one or more credit bureaus indicating that they had to charge off your account as a result of non-payment. When your account is sold to another company, the current organization either believes that they have gotten the most value out of the account or does not believe that it is cost effective to waste any more money working on the account. Either way, companies sell loans to other companies all the time. When an account is sold off AFTER being charged off, the buyer is usually a distressed debt (collections) organization that specializes in the collection of that type of debt. Usually these buyers pay very little for the loan because the likelihood of collection is quite low.
The usual procedure is to contact the creditor by phone, and follow up the phone contact with written correspondence outlining the terms that were agreed upon. You can find a sample letter of that type of creditor/debtor correspondence at http://www.fair-debt-collection-com
Whether the company is opertaing or not, does not make any difference. Proof of your account is still there.
Can I be charged with bank fraud or any other criminal offense for closing an account on a payday loan?
Perhaps. More details would be needed to give a definitive answer.
Yep! If the ambulance company turns your account over to a collection agency that agency might report the collection on your credit. Medical collections are the most common type of collection on a credit report.