Re: Accounts sold to CA's

Posted by Why Chat (209.240.198.61) on July 11, 2003 at 18:18:20:

In Reply to: Accounts sold to CA's posted by Mike on July 11, 2003 at 11:19:20:

If you settle with the original creditor for less than what you owe, you will get a 1099c declaring the unpaid balance as income to you. That eliminates this account,and prevents ANY further LEGAL collection on it.

When it is sold to a CA for 10¢ or less on the $,however,it is still carried on THEIR books for the full amount plus interest.

If you settle with them for less than the full amount, and they agree to delete their entry on your report,rather than reprt it as a settled collection, they MUST from an accounting point of view do SOMETHING with the balance.You cannot legally prevent them from disposing of an "asset".

Now, some will sell the balance to a CA that does not do any collections, they are called"archive" accounts, and are valuable as mailing lists.That is how many "garbage" CA's get account information without actually having any authority to collect on an account.

Basically, if you can avoid paying any CA a ¢ on an account, you are better off in the long run.

Follow Ups:

Post a Followup