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 Posted: Thu Apr 17, 2008 9:51 pm |
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Does anyone know what happens when the Cardit card company charges off your debt. I owe Capitol one, 1700.00, 1600.00 and 800.00. They got tha high from all their fees and late payment, over limit charges. They have all been turned over to collection, I get so many calls we stopped answering any 800 numbers. i also have a credit card to HSBC for 1800.00 and one other card which I owe 17,000 on, but that one is not in collections and I have agreed to pay them if they lower the interest to 6% and lower my payments to $200.00.
I just don't know what they do with charged off loans, will they take me to court, or get a judgement against me or garnish my wages?
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marydairy
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| Posted: Thu Apr 17, 2008 11:42 pm |
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I'm somewhat confused with your problem. I guess you have confused between the words charged off and settled. Let me put the problem in my own words, do correct me if I go wrong.
Few of your accounts are in collection. So, now you have to deal with the CAs.
You have proposed HSBC to settle the account at a lower amount. Hence, its a settled account and not charged-off.
The credit card company can declare an account as charged-off when a certain time limit passes by after the due date, say around five to six months. However, different companies follow their own process regarding declaring an account as charged-off.
The creditor can file a lawsuit against you after declaring the account as charged-off, and can also garnish your wage, but for that they need to obtain a judgment against you.
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Holland
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| Posted: Thu Apr 17, 2008 11:49 pm |
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I had an account get charged off and saw really no change. CA started calling and the interest was still added on to the account. I was able to negotiate with the CA for less then 50% of what I owed but was assured that if I did not pay the interest would still keep adding on. If you have any money saved up I would send out a DV letter to the CA and when they have validated send them an offer letter for an amount you can afford.
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mommontoya
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| Posted: Fri Apr 18, 2008 5:26 am |
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A charge off is a bad debt. It can reflect on your credit report for however long your state allows. Depending also on your state laws you can be charged a continued interest rate. You can also be taken to court as long as the debts are within the SoL for your state where a judgement could be granted against you and wage garnishment could be granted if your state allows. Usually you will be granted a payment plan and if you are unable to uphold that garnishment will follow (if allowed in your state).
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FYI
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