Can a bank collect after it has charged off a loan?
Date: Sun, 03/14/2010 - 15:48
I have a friend who had a bank loan that was in arrears; he tried to negotiate with them but they charged it off, then when he put a large deposit in the bank they seized it. Seems like double-dipping to me. What is his legal recourse?
He still owes the debt. So there is no recourse. The bank just "
He still owes the debt. So there is no recourse. The bank just "Charged it Off" to take it off their current books/active debt. The loan balance stops collecting interest and fees but the balance is there.
Does the bank violate any tax codes by taking a writeoff on debt
Does the bank violate any tax codes by taking a writeoff on debt that it subsequently collects? And does the bank have an obligation to update what it reports to the credit bureaus?
Probably not. Debits and credits all offset each other. If it
Probably not. Debits and credits all offset each other.
If it is paid, it should be reflecting a paid charge off/collection account.
