Legal Question in Business Law in California

Can debts that are ''charged off'' be collected on?

1. Can debts that are �charged off� by the creditor can be collected on by a collection agency? If so, how do I protect myself from excess interest charges, garnishment etc.?

There is an old loan that was charged off by the company and no effort to collect was ever made. Now a collection agency comes out of nowhere trying to collect on the debt. I cannot locate records on the original loan, the collection agency refuses to provide the information about the original loan and has not otherwise established that they have a valid debt.

I have sent several letters to them (the last two times were by certified mail). They continue to call, although I requested a response in writing. My last letter requested that they not call me anymore and stated that I would only respond to their written correspondence. They called anyway and point blank told me that they would not write me. Then I get a demand for payment saying that I have not responded to any of their previous correspondence! Two days later I get a notice of intent to file suit. I need to find out what is really owed and if I am still liable for the debt at this point.


Asked on 7/26/01, 7:09 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Can debts that are ''charged off'' be collected on?

Did you borrow money and fail to repay it? If so, an attempt to collect is probably valid unless or until the applicable statute of limitations is past. Probably four years, possibly longer. The fact that the lender has elected to "charge off" (whatever that means) the loan has little or no effect on your liability.

The collection methods, however, may be improper. You should keep a careful record of everything that has happened. I assume you've kept copies of your letters, but make notes on their phone calls too. Ask for the name and number of the collection agency.

If you are sued, the lender will be obliged to put at least some of the basis of their claim in writing in the complaint. Always respond appropriately to any actual summons and complaint. Unless it's in small claims, get the assistance of an attorney.

Read more
Answered on 7/27/01, 1:35 pm


Related Questions & Answers

More Business Law questions and answers in California