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Barrister
Barrister, Attorney
Category: Business Law
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Experience:  14 years practicing attorney, MBA
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Several years ago my wife and I got a credit card to purchase

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Several years ago my wife and I got a credit card to purchase new carpet. And we had a couple other credit cards. We got divorced in 2001. She got the house so the judge said she should then be responsible for the card with the carpet charged on it. Anyway the card company doesn't care what the judge said because we were both on the app. Anyway the last time i looked at my credit, a few of the credit card companies charged off on them. At least on my credit report it says charged off. Then under them on my credit report it has this collection company saying I owe them the same amount that the credit card company charged off. When I managed a car dealership our accountant told me when someone owed me money and I got tired of trying to collect it and wrote it off as a loss for tax reasons, I could not still try to collect it from the person that owed it to me because I charged it off and collected it from them that would be getting paid twice for the one debt. So any account I charged off I could no longer try to collect from who's account that was. So if the credit card company charged off my account how can this collection place still be calling me saying I now owe them and hold it against me again on my credit. Now there are two black marks on my credit for one account. How does this work? And can they do this or is there something I can do?
Submitted: 2 years ago.
Category: Business Law
Expert:  Barrister replied 2 years ago.
Hello,

When an account is "charged off" that does not mean that the debt is forgiven. That is just an accounting method that allows the creditor to be able to take a tax deduction for the loss against other income. The debt is still valid and they they typically sell it to a collection agency who can then attempt to collect on the debt. If they are able to do so, they then recognize it as income and pay taxes on the amount over what they paid.
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If the collection agency is just acting as agent for the original lender, if they can collect, then the original lender just reports this as income on their taxes.
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Since you state that there are two negative entries, then the original creditor must have sold the debt to the collection agency. Because a new creditor now owns the debt, they can report it as delinquent as well. Each time the debt is sold, a new owner can report the debt as delinquent until the statute of limitations runs on collecting the debt. In Florida the statute of limitations is 5 years on credit card debt.
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Thanks.

Barrister

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Please keep in mind that I am trying to help you understand and resolve your situation. I don't make the laws, I am just reporting or interpreting them, so the outcome may not be what you had hoped for.

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Please be patient as I am typically working with several customers at any given time. Some answers take 5 minutes, some 35 minutes, depending on the level of complexity. But rest assured, I will get back with you as soon as I am able.

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If you need additional clarification on this question, just click "Reply" and I will be happy to help you. Please give me as much detail as you can so that I can respond after receiving all the relevant details.

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Please be aware that I am not entering into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. With that in mind, please do not post any specific information you do not want available for public viewing. The information provided is not a substitute for a local attorney’s legal advice.

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Customer: replied 2 years ago.
Does that mean when they sell the account to someone else the 10 yr starts all over again with whomever bought the account?
Expert:  Barrister replied 2 years ago.
No, and it is 5 years in FL. FL law would control because this is where the account was opened. The statute of limitations starts to run once the account is considered delinquent. This is 30 days after any payment is missed. Once that 5 years runs, the debt is barred from collection action unless they file suit before the SOL runs.
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Once that 5 years has run, the collection agencies are in violation of the Fair Debt Collection Practices Act if they try to collect. They may still try, but if you send them a letter disputing the debt as being a "zombie debt" because it is outside the SOL, then they will stop calling you as they can be sued for $1000.00 per occurrance if they continue.
.

.

.

Thanks.

Barrister

.

Please keep in mind that I am trying to help you understand and resolve your situation. I don't make the laws, I am just reporting or interpreting them, so the outcome may not be what you had hoped for.

.
Please be patient as I am typically working with several customers at any given time. Some answers take 5 minutes, some 35 minutes, depending on the level of complexity. But rest assured, I will get back with you as soon as I am able.

.

If you need additional clarification on this question, just click "Reply" and I will be happy to help you. Please give me as much detail as you can so that I can respond after receiving all the relevant details.

.

Please be aware that I am not entering into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. With that in mind, please do not post any specific information you do not want available for public viewing. The information provided is not a substitute for a local attorney’s legal advice.

.

Barrister, Attorney
Category: Business Law
Satisfied Customers: 23138
Experience: 14 years practicing attorney, MBA
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