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Is it legal/ethical for a lender to report your acc't to a credit bureau as charged off, then demand payment? |
Is it legal/ethical for a lender to report your acc't to a credit bureau as charged off, then demand payment? Yes it's legal to report a charged off account and demand payment. But it, like anything else on your reports, must be reported without any inaccuracies. Just because it is charged off does not mean that they have sold it off, they may still own it. put yourself in there shoes. No way. yes it is unfortunatly. i worked for a bank so i know exactly what your talking about. if it gets charged off its because many many days went by and you never took care of it, so they charge it off (meaning-no payment recieved) but then they can demand payment and if you do pay they will report it as a paid charge off. Call the credit bureau and tell them you wish to dispute it. They all have a procedure for this sort of situation. It's in the credit bureau's own interest to have accurate information. Legal yes, as you still owe the money. Ethics have little to do with that. Charging off bad debts is a bookkeeping thing they have to do if the debt is past a certain date, otherwise they have to show it as income (and pay taxes on it). charged off just means that the company had taken a loss on what you owe them. They still have the right to collect the money, or even sell your information to another collection agency which at that point will start a new 7 years on your credit report from the day the new company purchased your information |
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