DO CREDIT CARD COMPANIES WRITE OFF DEBT?
Posted on
July 9, 2009
at
1:37 am
i just want to know the answer to this because debt collectors have constantly threatened with this. is it a legal process? do they really write off my debt,
Posted on
July 9, 2009
at
4:01 am
Yes, they do. Creditors write off your debts after 6 months, or 180 days, of non-payment. Some creditors will charge it off after 207 days of no payments, although the former is federally mandated.
Posted on
July 9, 2009
at
4:02 am
what happens when it is charged offam i still obligated to pay for the bill
Posted on
July 9, 2009
at
4:47 am
Take note that there's a difference between a write-off and a charge-off. When a debt is written off, it means that the creditor has deemed that this debt is a liability on their accounting books, and they are no longer are expecting you to pay off the debt. A charge-off, on the other hand, means that this loan can no longer be collected. Write-offs are declared on properties such as buildings, vehicles, or equipment that have lost their value.Hope this clears up the confusion.
Posted on
July 9, 2009
at
11:47 pm
The written-off debt is reported to the credit bureaus as a "charge-off," and the latter is basically just used as an accounting term to describe the status of the account. It does not in any way imply that the account is no longer your responsibility. In other words, you are still obliged to pay for the loan, and the lender or collector will still attempt collection activities against you.
Posted on
July 10, 2009
at
2:19 am
The account will either be turned over to the lender's in-house collections department or a third-party collections agency. Also, two entries will reflect on your credit report. The first record will be provided by the original creditor, stating that it is a charged-off account. The second record will be from the collections agency, and the account's status is reported as in collections.
Posted on
July 10, 2009
at
2:30 am
It's also possible for your creditor to transfer the account either to a debt buyer, or a local attorney.
Posted on
July 20, 2009
at
11:34 am
They would actually sell the debt to a debt buyer. I don't know if that is what you meant by transfer. Also, yes, even if the debt is written off, you are still responsible for the debt and they (whoever is handling the account at that time for collection) will continue to try and collect. So yes the credit card companies do write off debt but that does not mean it has been satisfied or that the debtor is not liable for repayment. Keep that in mind. On the bright side, a lot of times if your account has been charged off, you could be eligible for a pretty lowe settlement. You may want to consider finding out what the collector is offering to get the debt resolved once and for all.
Posted on
July 20, 2009
at
9:50 pm
a pretty low settlement sounds good to me. how low would that be? i wonder if they'll agree that i pay 25% of my total loan balance only?
Posted on
July 22, 2009
at
3:06 pm
How low a settlement will be typically depends on what creditor or collector you are dealing with, how far past due the account is and how high the balance is. Who is the debt with? If it is with a third party who is the original creditor?
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