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Can CC file suit after writing off?
- Thread starter tnacke
- Start date
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olgethorpe
Member
The whole "charge off" / "write off" thing is not what it appears. In reality, its an accounting function somewhat tied up in IRS rules that allows a creditor to move debts from the "active" to "inactive" categories on their bookkeeping. "Inactive" or "bad debts" can sometimes be charged against income on which the creditor must pay taxes. Depends on whether the creditor keeps their books on a cash or accural basis. Most big companies use accrual.
What it mean to you? Not much, I'm afraid. The creditor can still pursue the debt and even charge interest on it...up until the point where its "charged off / sold to another lender" in which case the new owner hassles you. There's a lot of discussion as to whether or not the new owner is entitled to the full amount of the debt, but that won't stop them from trying to collect it.
What it mean to you? Not much, I'm afraid. The creditor can still pursue the debt and even charge interest on it...up until the point where its "charged off / sold to another lender" in which case the new owner hassles you. There's a lot of discussion as to whether or not the new owner is entitled to the full amount of the debt, but that won't stop them from trying to collect it.
tnacke said:What is the name of your state?TX
Can the CC company file suit after they have "written off" your account?
Technically -yes, anyone or entity can file suit.
The question is- Is it a legally enforceable debt? Has the time frame to collect surpassed the state limitation? The burden of proof will lay with the plaintiff.
"Written Off" or "Charged Off" are accounting terms and have nothing to do with the collectability of the debt.
Most credit card companies are required by the federal regulators to charge off the account when it is six months delinquent. Some will charge off a little earlier and some a little later.
The legal status of the debt is determined by the statue of limitations for your state. Every state is different. For example, Texas is 4 years.
The statue of limitations begins to run with the default of the debt -- usually 30 days after your last regular payment.
Regardless of the state statute of limitations or the accounting status of the debt, the debt may be reported on your credit report of 7 1/2 years after the date of default.
Most credit card companies are required by the federal regulators to charge off the account when it is six months delinquent. Some will charge off a little earlier and some a little later.
The legal status of the debt is determined by the statue of limitations for your state. Every state is different. For example, Texas is 4 years.
The statue of limitations begins to run with the default of the debt -- usually 30 days after your last regular payment.
Regardless of the state statute of limitations or the accounting status of the debt, the debt may be reported on your credit report of 7 1/2 years after the date of default.
flora maestas
Member
Sol On Cc Debt Now Owned By New Company
New Mexico
I recently received a collection letter from a company trying to collect on a credit card debt they now own, formally due to Providian National Bank. This debt went into default when I lost my job, the last payment made as far as I recall was January 2001. It is my understanding that the SOL for NM is 4 years but how does that apply to a debt which has now been sold to another institution?
I am still unable to pay this debt....can I send a letter to this new company and what are my rights? Can they continue to harass me even if the SOL is expired? What exactly can I do?
New Mexico
I recently received a collection letter from a company trying to collect on a credit card debt they now own, formally due to Providian National Bank. This debt went into default when I lost my job, the last payment made as far as I recall was January 2001. It is my understanding that the SOL for NM is 4 years but how does that apply to a debt which has now been sold to another institution?
I am still unable to pay this debt....can I send a letter to this new company and what are my rights? Can they continue to harass me even if the SOL is expired? What exactly can I do?
flora maestas said:New Mexico
I recently received a collection letter from a company trying to collect on a credit card debt they now own, formally due to Providian National Bank. This debt went into default when I lost my job, the last payment made as far as I recall was January 2001. It is my understanding that the SOL for NM is 4 years but how does that apply to a debt which has now been sold to another institution?
I am still unable to pay this debt....can I send a letter to this new company and what are my rights? Can they continue to harass me even if the SOL is expired? What exactly can I do?
In the future, please start your own thread. Hijacking is considered rude and it can be confusing.
The SOL is the same, regardless if it has been sold or not. If you are sure it is passed the SOL, send a cease and desist letter certified mail return receipt. Otherwise, send a debt validation letter, CMRR. The CA can still try and collect, until you tell them otherwise through the mail, CMRR. IF they sue, you will have an affirmative defense.