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 Posted: Fri May 02, 2008 6:27 am |
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First off I thought I read that Charge offs could not be collected on because the original creditors have already made their money back threw the IRS. Can someone clarify on that for me?
Second, When a Junk Debt Buyer buys an old debt for say .06-.08 cents on the dollar, meaning they bought a debt from another debt collector or original creditor for a $3,000 debt and paid $ about $200 for it. The Debt collector charges interest on that $3,000 and it quickly adds up, BUT if and when they do collect the full amount, do they keep that whole amount or does most of it go back to the original creditor? It would seem like strong arming or extortion if the JDB pays $200 for something and turns around for a healthy profit of over $3,000. I don't fully understand their process.
If I buy tickets to a baseball game for $200 and turn around and sell them for $1,400 that would be illegal and is basically the same principle.
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| Posted: Fri May 02, 2008 8:35 am |
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| Code: | | First off I thought I read that Charge offs could not be collected on because the original creditors have already made their money back threw the IRS. |
A tax break is not the same as a tax credit.
| Code: | | The Debt collector charges interest on that $3,000 and it quickly adds up, BUT if and when they do collect the full amount, do they keep that whole amount or does most of it go back to the original creditor? |
Interest can only be charged if the contract explicitly permits it, and state law allows it. The OC gets paid only if they still own the debt.
| Code: | | It would seem like strong arming or extortion if the JDB pays $200 for something and turns around for a healthy profit of over $3,000. |
Sure, if they're making illegal threats. If not, it's just property rights and capitalism at work.
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Morningstar
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| Posted: Fri May 02, 2008 9:13 am |
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A charge off isn't the same thing as a write off. A charge off can be collected on until it is resolved. However legal action can not be taken if it is out of the SoL.
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FYI
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| Posted: Sat May 03, 2008 8:22 pm |
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SOO.........if you haven't finished paying off a 'charge off' and the SOL expires, are you STILL responsible for the 'balance' of the debt?
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sdchargers_63
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| Posted: Sat May 03, 2008 9:15 pm |
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Yes, an expired SoL only protects you from legal action it doesn't make the debt smaller or no longer collectible.
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FYI
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cajunbulldog
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| Posted: Tue May 06, 2008 11:57 pm |
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what are those two states? is it okay to tell people here or is that not allowed? 
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