Legal Question in Credit and Debt Law in Missouri

Re: Charge-offs

Charging the account off merely means that the company accepts the loss on their books. It does not mean they give up the right to receive the money.

Usually they "assign" the debt to a debt collector and let that collector pursue the debtor. Sometimes they "sell" the debt outright to a third party. They get $0.10 to $.20 on the dollar, and the creditor gets the right to make your life a living hell (or so they think).

Unless there is a specific provision to the contrary in the agreement, the assignments are usually valid, and so are the sales. The debt collector may then go after the debtor. But they must do so under the rubric of the Fair Debt Collection Practices Act.

Keep in mind that once a debt goes past the statute of limitations, it is uncollectible unless you take steps to recognize the debt and keep it active. You should always avoid doing that.

Good luck