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Is it legal for the lender to keep adding fees after the account is charged off?
Wiki User
∙ 8y ago
It depends on the contract between the credit grantor and consumer, type of account and applicable state and Federal Laws. Many federal and state regulations, as well as card holder agreements, allow interest penalties to accrue.
Yes.
A charge off does not mean the debt is not owed and subject to collection.
It indicates that the original creditor is closing the account for tax and accounting purposes and is referring the delinquent account to collections.
Wiki User
∙ 8y ago
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Can a creditor keep reporting a charged off account?
That is perfectly legal. The term "charge off" does not mean that the debt is not still valid and fully collectible.
What is the best way to get Last Activity Dates to reflect on credit reports versus closed or charged-off dates because there is a big difference in legal reporting time when considering the two?
There is no difference. The DLA indicates the last activity noted, whether it was the last payment made by the debtor or the time the account was charged off. If a debtor makes a payment after an account is charged off, then the 7 year credit report requirement is restarted.
Is it legal to transfer funds from business to personal account?
It is legal as long as both accounts belong to the same person/company. If the owner of a company transfers cash from his business account to his business account it is legal. But, if his Personal Assistant does it from her boss's business account to her personal account, it is illegal.
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 credit cards obligated to inform clients of actions that will be taken with an account such as being sent to collection or charged off?
Original creditors do not have the legal obligation to inform the customer of such actions, but as a rule they will do so. "Charge off" does not indicate that the debt is invalid/uncollectible.
Can a lender charge you interest in Illinois on the remaining balance of a car repossessed?
The lender can charge you interest on the LOAN, as long as it is not charged off. Once the loan is charged off, the account is essentially closed. It is at this point that they will begin legal proceedings and the big charges are added to the balance: court costs, legal fees, collections costs. And these do not stop mounting after the judgment is granted. It just keeps going.
Is it legal for a lender to sell your charged off debt to another lender?
Yes, it is a common practice especially when it relates to credit card debt.
Is it legal to charge off a vehicle account when the owner wasn't notified?
Yes, there is no law that says a debtor needs to be notified of any debt being charged off by the lender. The term simply refers to the original lender moving a debt from an open account to inside or outside collections. The debt remains valid and collectible.
If an account is charged off but payments are current on the account can a lender repossess collateral?
If payments are current it would not be advantageous for a creditor to charge off an account nor in some cases legal. If there are arrearages on the account that is a different issue, as the account would be considered in default and property that was used to secure the loan could be seized.
Can a creditor put a freeze on your bank account?
No. No creditor has the right to freeze a bank account - only the court has the right to do so. Now, if a bank account or any asset with value has been offered as security to the lender, then it is possible that the lender may seek a legal remedy to obtain the asset, however, that remedy is conducted through a civil suit. If the court finds the lender to be in the right, they will rule as judging against the defendant(s) and will provide legal recourse to the lender to obtain an appropriate settlement (but the lender still cannot freeze an account). A bank account can only be frozen by the court in which a suit has been filed against the account holder. The reason for this is to prevent the debtor from removing monies from the account, closing the account or transferring ownership of said account. Accounts that are allowed to be held as TBE by married couples cannot be levied if only one spouse is a debtor. (TBE accounts are not available in all US states and none are allowed in community property states).
Is it legal for a lender to report a negative paid account as delinquent?
No. A creditor can report a paid derogatory account as delinquent PRIOR to being paid. But if you paid it off, the correct status is "paid" (collection or charge off).
Can a creditor keep reporting a charged off account?
That is perfectly legal. The term "charge off" does not mean that the debt is not still valid and fully collectible.
If your car is charged off how should you handle it if you don't have the money?
Wait until the account goes to collections you will be charged the difference between what was owed on the car and the amount the car was sold for at auction plus some legal and auction fees. The lender will try to collect the balance from you for three or four months then give up and sell the debt to a collection company for about six cents on the dollar offer them ten to fifteen cents if they will remove it from your credit report.
What is the minimum dollar amount to open an Emigrant Direct Account?
There is no minimum deposit required to open an Emigrant Direct Account. Fees will be charged for services such as letters of verification and legal fees should any occur.
What is the legal definition of self-cert mortgages?
The legal definition of a self-cert mortgages is where the owner/buyer transfers to the lender an interest in real estate allowing the lender to secure a repayment of their debt.
Can a lender take legal action against the homeowner?
It's called repossession. The lender owns the property, the homeowner is making payments.
What if you win lottery and stop paying mortgage?
The lender will take possession of your property by foreclosure. It will then sell the property and will pursue you in court for any deficiency and legal costs.The lender will take possession of your property by foreclosure. It will then sell the property and will pursue you in court for any deficiency and legal costs.The lender will take possession of your property by foreclosure. It will then sell the property and will pursue you in court for any deficiency and legal costs.The lender will take possession of your property by foreclosure. It will then sell the property and will pursue you in court for any deficiency and legal costs.
