?? about a charged off account... Need some legal advice!?

Ok, we have a simple question - we think we know the answer, but need some confirmation... When an account has been charged off, can the creditor continue to accrue finance charges and late fees, etc after the fact?

My hubby had a credit account that was charged off. The last reported date on his credit reports shows 9/2007. The comments also indicate the account was charged off. We spoke with the creditor today and he stated to my husband that until we paid (almost 3 times the original debt), the account was continuing to accrue these charges...

I also wonder why they would last report $689 on 9/2007 as a charge off, but then turn around and try to sue for $2,072 AND imply that more charges are accruing!

Also, how could we go about finding out when the company actually charged off the account? I am not confident that the last reported date is when it actually charged off...

I just need someone to maybe shed a little light for us. Thanks in advance!

We don't need to file for bankruptcy over this matter... We have the cash available to pay this company off, we just think it is ridiculous to pay 3 times the original amount given the fact that (1) the item is far from that value and (2) they already charged it off as bad debt! We have no problem paying a valid debt, but we want some details about the amount they are suing for. We offered them first $1,000 then $1,500 in cash, TODAY to settle this out of court and they refused it. And to make matters worse, this company won't provide us with any documentation as to how they came up with their mystery figure...

Is the account in the internal collections office or a collector who is associated with the creditor but the creditor still owns the account?

Is it Capital One?

They are suing you for Atty fees and that is why the debt is 2072.

STOP speaking to anyone PERIOD! Communicate ONLY in writing.

Seem them a RRR letter and tell them you will settle the account for 50% of the 689.00 upon receipt of a statement from them accepting such an offer. DO NOT talk to them on the phone about it. DO NOT send anything until you get a statement accepting the offer. DO NOT send a personal check to them. DO NOT agree to a check by phone.

Once they do accept then send a copy of the letter back with a money order for the settled amount.

BE ADVISED this goes on your credit report as paid as agreed and not a paid account.

Did I mention STAY OFF THE PHONE.

Make the offer in writing.

They will try to add finance charges as long as possible. If you are in the position, just file bankruptcy. There is no reason to be taken advantage of with such blatant usury.

I would make them give to you proof of what you owe, in writing. I would get a free consultation with a lawyer and see exactly what your rights are. Do not let them scare you into paying something you might not owe!

1. Have you pulled your credit report? Go to http://perfectcreditcompany.com and scroll to bottom of home page and click on free credit report. Find out what derogatory item is reporting.

2. Dispute the derogatory item with the credit bureau reporting it.

3. At the same time write a letter of validation to the collection agency that is reporting the derogatory item.

I am not a lawyer or credit counselor, so take my answer for what it's worth. (My standard disclaimer..)

I have, however, helped tons of people with their credit problems, and I DO know the law.

First question...are you dealing with the original creditor, or with a collection agency. I am going to bet that this debt has been charged off and sold to a collection agency.

The clues are obvious. They are not willing to give you proof of what they owe.

You also make a comment that yo are trying to "settle this out of court". Have the filed a lawsuit against you yet? Or are they just threatening you with one?

If they have filed a lawsuit, file a motion with the court demanding that they supply you with a disclosure of what you owe. You are either going to have to research this a bit, or consult with a lawyer.

No lawsuit? Cool. Here is what you do.

Note that if this debt is charged off and sold, the collection agent does NOT have the right to tack on additional fees and interest. This is the law in most states. They can certainly TRY to collect, but if you understand your rights you can put a quick stop to that.

I am very suspicious about why they refuse to supply you proof of your debt. Legally, this is called "debt validation".

By LAW, if you send the collection agency a certified letter/return receipt demanding that they "validate" the debt, they must stop all collection activities until they can supply you with the original contracts, bills, receipts, and a complete accounting of how the calculated what they claim you owe.

Also demand that they show you where they can legally collect interest or fees on an account that was charged off and sold. True, the contract may say they can do it, but when a contract is charged off (closed) that ceases the contract and it's terms. Ask your lawyer for details.

But for now, if they have not already filed a suit, the second they receive your letter they are forced to disclose this information. Read the Fair Debt Collections Act.

Need more info? Contact me.

Also note...when was the last time you made a payment or charge on this debt. You keep referring to the "last reported date" but note that this means nothing! That is the date the credit bureau received any info or update on your account.

The key is the "delinquency date". This is the day you miss your last payment and didn't make any other payment or charge. It's also the Statute of Limitations date. After a certain time period, the creditor can no longer sue you for the debt. This is usually 4-6 years in most states. So verify this date also.

NO WAY IN HELLLLL first you should get a lawyer consultant to see which way to handle it in or out of Court sometimes when a company see you're not afraid and mean business they will settle out of court because they know what they re doing is illegal. Question for u did u sign any document stating that u would pay three times the amount if he charged off the account REMEMBER always read the fine print///