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When you have an account charged off why can someone else buy out this account and have it start all over again?
Wiki User
∙ 18y ago
The simple answer is because it is perfectly legal. Creditors sell defaulted accounts to third party collectors for literally pennies on the dollar. They can then collect the full amount plus interest and penalties until the account is in some way settled or paid in full.
Wiki User
∙ 18y ago
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