If the third party has the authorization over the debt, he can collect the debt from you. Thus, in the process of collection, if you are not paying the dues, they can sue you.
As far as I understand from your query, your debt has been charged off. When a company realizes that, it won't be able to collect the dues from you, it writes off the account as a loss. They then hands over the account to a collection agency. This is called the charge-off.
Hope this helps. _________________ Keep in touch
Subject: mortgage charge off
Tue Sep 21, 2010 2:36 pm
My Citimortgage was charge off now i'm getting calls from a debt collector, can the debt collector start a garnishment on me. HELP NOW
To start a garnishment, the collection agency will have to sue you first and win the lawsuit against you. However, before they can sue you, you need to set up a payment plan with the collection agency.
Aaron _________________ Keep in touch
Subject: Charge Off and Debt Settlement
Tue Nov 09, 2010 5:57 am
In Oct 2006 I settled several accounts with Cap One only to find out that 2 of the 3 accounts were charged off and never reported the settlement. We negotiated on the phone and I gave verbal authorization for the payments. Payments were collected and I have copies of the payments but no letter of settlement. Cap One is trying to collect again and is reporting the charge off as a 2010 event.
The credit agencies had Cap One verify the accounts which they did but still w/o the settlement.
Do I have to pay again? Is there a way I can challenge Cap One? I really want to resolve this matter the best way possible.
I also received a 2010 statement for the 2 accounts - last time I received one was in 2006.
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Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.