Charged off debt is still YOUR debt
OK. I just saw this Youtube entry from some backwater redneck in a polyester suit. He was advising people that collection attorneys (referred to as bottom feeders) cannot collect debt that was charged off by a bank or credit union because the institution took a credit for it on its tax return. This is the second time that I heard this argument this year. This guy has inspired me to create a new category for my blog entitled Bad Collection info floating around the ‘net.
Anyway, the bottom line is that just because the bank charged off your debt does not mean that you get to skate from the bill. You still owe the bill. The bank can sell the debt and you still owe the entire amount of the bill plus interest, costs and attorneys’ fees if you get sued. Banks frequently charge off debt because they are governed by regulations and regulators that frequently look at their books and records. These regulations do not allow banks to keep non collectible debts on the banks books in the collectible column.
The FDCPA has nothing to do with this issue, no matter what Billy Bob from YouTube says. The FDCPA only protects you if the debt was a consumer debt and if new collector or debt owner attempts to collect it from you.
If you want advise on collecting a debt or how to work with a collector so you do not get bullied, call a lawyer. Yuk yuks like this guy are only going to get you into trouble.