Debt charged off

[eli4625]

What is the name of your state (only U.S. law)? IN
If a credit card company charges off a debt for non collection, what legal rights does a collection agency have to try and collect it? If the debt was never owed to them, why should money go to them?

[Some Random Guy]

You fail to understand the meaning of charged off.

Charged off is an accounting term that means that your debt no longer falls into the "Accounts receivable" bucket, and instead falls into the "bad debt" bucket. So the business takes a loss on their taxes because your debt is no longer good enough to be considered an asset.

This does NOT mean you don't owe them the money! it means that if they do collect the money, then it is considered revenue for tax purposes.

Collection agencies may be working for the original creditor or they may have bought your debt. Since you are known as a deadbeat to the company, the collecion agency probably only paid pennies on the dollar for the debt. BUT YOU STILL LEGALLY OWE THEM THE ENTIRE AMOUNT.

[AnotherMoron]

Originally Posted by eli4625

What is the name of your state (only U.S. law)? IN
If a credit card company charges off a debt for non collection, what legal rights does a collection agency have to try and collect it?

All of them.

If the debt was never owed to them, why should money go to them?

Because they either bought it and are now the owners of the debt or are working on behalf of the original creditor to collect the debt for the original creditor and regardless who has possession of the debt, you owe the money.

Instead of expending time and energy on trying to get out of paying what you owe, why don't you put that time and energy toward earning money to pay the debt back?

[Texas Pooh]

The collection agency can collect all of the following: (a) the original debt; (b) all of the interest that has been accruing since you stopped failing the debt; and (c) all attorneys fees they spend trying to collect from you and suing in court.

You have the right, of course, to respond to the litigation by asking for documentation of all of the foregoing.