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Why do some collection agencies get a charge off account and start it like a new account?
Wiki User
∙ 18y ago
Charge off is what the one you owed did. Took the loss on their records. They may sell the right to it to someone else who may try and collect, who also may do the same thing, and they may also sell it to another, etc. Each party Charges Off the amount they believe they will never collect. CHARGING OFF IS NOT FORGIVING....YOU OWE THE DEBT....THE LENDER/OWNER OF THE RIGHT TO COLLECT IT SIMPLY IS ACCOUNTING FOR THE LOSS. See discussion, pasted below, which was originally for a slightly different Q: A charge off (or write off) is the accounting process where a business acknowledges a receivable (an asset) it believes is uncollectable effectively does not exist. It is taking the cost of not collecting that receivable as a charge against current earnings. Hence the companies net current earnings is lower than they would have been and subsequently, the amount of income taxes they pay is also lower. IMPORTANT: It does not mean the debt is forgiven, just that they can
Wiki User
∙ 18y ago
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When does the statute of limitation start on a credit card?
The SOL begins when an account is considered in default. SOL's only apply to lawsuits, they do not halt collection procedures by the OC or an assigned collection agency.
Is sales the driving force for accounts receivable?
yes the sales will drive the main steam in the account receivable because when the sales happen the account receivable collection attampt will start
Can a creditor reopen an account once it has been reported to the credit agencies as a charge off?
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.
What date do they start from to take a charge off on your credit report and how long does it last on your report?
The Fair Credit Reporting Act establishes a method by which derogatory information, like a charge off, can show on your credit report. This time period begins on the month/year you last paid the account on-time immediately prior to its' default. The account may show for 7 years from this date.
How old do you have to be to start a bank account in Georgia?
With a parent or guardian also on the account, a child can have a bank account at any age. They cannot, however, have a checking account.
When does the seven year mark to remove negative history from your credit report start?
It begins from the time a late payment was made or when the account is remanded to a collection agency. Some collection agencies will update the reporting status on an account, thereby keeping an account active and extending the expiration date. This is not legal and the consumer should always challenge any such activity shown on their CR and insist the data be corrected.
When does the statute of limitation start on a credit card?
The SOL begins when an account is considered in default. SOL's only apply to lawsuits, they do not halt collection procedures by the OC or an assigned collection agency.
Is sales the driving force for accounts receivable?
yes the sales will drive the main steam in the account receivable because when the sales happen the account receivable collection attampt will start
Can a creditor keep selling the debt to new collection agencies and start the clock ticking again as soon as it gets close to the 7 year limit?
I am assuming you are referring to the debtors CR. In which case the answer is No! The time limit for a debt to be removed from a CR, generally begins six months after the date of last activity on the account.
If I make a website I want to start an online webshow and I want to charge people to watch But how do I charge the people Like I want to charge by credit card but how do I go about that?
You could set up an online account with national bancard the rates are reasonable and the money goes directly into your own bank account. The rates are pretty reasonable also.
If you recently paid off a charge-off with Macy's and they reinstated your account will the old information be removed and start fresh with reporting?
you will have to get macy's to remove the charge-off from your report or change it to a good standing remark. because they will show a new account opened on you report along with the charge-off. if they agree to change it get it in writing and report it to the bureaus when they report it. the lender only can remove the charge-off
What are the best stamps to start out with when building a long-term collection?
Collection of ‘First day covers’ is the best way to start long term stamp collection.
How can you start a Swiss bank account?
how can i start a Swiss bank account
What useful agencies are there for parents?
Agencies that are useful to parents include some state agencies like Head Start and other school related agencies. The Department of Human Services has several agencies that can help parents with day care.
How many bears in the Giorgio collection?
there are 2000 in the whole collection
How do you start a bank account Do you need to pay anything?
Depends on the bank. Usually you have to have a specific amount of money to deposit to start an account, like $300 or something, but some banks will waive that and let you open an account with less. I'd crack open the phone book and start calling banks, ask them what their requirements are. firstly just go to any bank and ask. secondly no. they don't charge money to hold money.
If the statute of limitation in Michigan is 6 years-is it 6 years from the last payment you have made on a credit card.?
The statute of limitations on debt in Michigan is typically measured from the date of the last activity on the account, such as a payment. So, if you made a payment on your credit card account, the 6-year period would likely start from that date. Just keep in mind that consulting with a legal professional for specifics on your situation is recommended.
