Charged off Debt

by Gary
(Newtwon PA)

I wish I could say I had some $$ to buy/read your book but I have none. I hope you will be gracious enough to answer this for me.

We just had our first credit card debt "charged off" by a bank. The bank still owns the debt and has not sold it but they have turned us over to a 3rd party collection agency.

We have been advised by the 3rd party collection agency that even though the bank has charged off the debt it will still accrue interest and the money we owe will continue to increase
Is this allowed?

Comments for Charged off Debt

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Jul 15, 2009
Interest on Charged Off Debts
by: Gerri


I am sorry to hear what a rough time you are going through. I imagine it's incredibly stressful to find yourself unable to pay your bills.

Yes, in most cases interest and fees can continue to accrue on charged off debts. However, those are regulated by state law and any consumer law attorney can tell you that some collectors illegally inflate those charges.

Your main concern at this point is not so much how much interest is accumulating. Debt collectors settle debts for less than the full amount all the time, and it doesn't matter either way if you pay your debt in full or in part - as far as your credit scores go. (There may be taxes due on forgiven debts, however.)

Your concern at this point, though, will be how to handle the debts that you're unable to pay. Something in your email makes me think this is not the only debt you are dealing with. I also don't know the amount - how large is this debt?

Can you comment on my comment (!) and provide a little more information about how much you owe, what types of debts, and what your financial situation is? I'd be happy to try to point you in the right direction.

In addition, New Era Debt Solutions has purchased a number of copies of my other book, Reduce Debt, Reduce Stress, to give to consumers at no cost. Feel free to call them at 888 - 628 - 0539 if you would like a copy.

I think you'll find it helpful.

Aug 08, 2009
Charged Off Is Still Owed
by: Anonymous

Many myths about "charged off", means original creditor sent to 3rd party company to collect debt owed, DOES NOT MEAN "WENT AWAY", DEBT IS STILL OWED!

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