Posted on
June 17, 2009
at
11:48 am
I had a collector from Bank of America call me to tell me I need to work something out with them asap because if not they will write off my debt? Can they do this and if so when would they?
Posted on
June 17, 2009
at
11:57 am
Yes, a lender can write off a past due credit card debt if you continue to miss payments. I am not exactly sure when they usually do this though. Does anyone know when banks/lenders will typically write a debt off?
Posted on
June 17, 2009
at
12:44 pm
Typically a lender will write off a debt after the account is 180 days past due.
Posted on
June 17, 2009
at
2:22 pm
It is my understanding that if your account is about to charge off you may be eligible for a fairly low settlement on your account if Bank of America is handling it. If you aren't comfortable negotiating on your own feel free to fill out a form on DestroyDebt.Com to get matched up with a qualified provider. It would be helpful to settle the account before it charges off as that would be a negative mark to have on your credit report. Also, after accounts charge off the creditor usually will assign the debt to a collection agency. If you want to avoid the hassle of working with a third party collector settling the account now is your best bet.
Posted on
July 6, 2009
at
6:15 pm
Sorry for the double post- but something important that I wanted to add in regards to when debt is written off. The other reason BOA has incentive to settle pre charge off is to preserve their charge off ratio. This is the amount of debt that they are writing off compared to the total amount they are lending. If a charge off ratio is high (anything over 5-6% on average), it is a turn-off for potential investors as it demonstrates the lenders inability to collect a high percentage of the debt they have been lending to consumers.
Posted on
July 7, 2009
at
12:54 am
There are still third-party collection agencies that collect even if the loan is beyond 180 days past due, and the creditors who are their clients charge off the accounts if the bill is still uncollectible after 207 days of non-payment.
Posted on
July 9, 2009
at
1:31 am
Debt is also written off when an account holder passes away, and his/her creditors are not able to collect from the deceased person's from their estate. Creditors and collectors are not allowed to collect from the deceased person's family members.
Posted on
September 11, 2009
at
7:05 am
Another question to ask: Is debt written off too when the consumer is insolvent?
Posted on
September 11, 2009
at
7:09 am
When is debt written off? Would this be a valid answer? When the consumer is diagnosed with a mental disease - which he/she did not have prior to the card charges..
