Legal Question in Credit and Debt Law in Virginia
credit card delinquencies
if a credit card company wrote off a debt is it true they get an insurance pay-off? If this is true do they have a right to get a court judgement then?
2 Answers from Attorneys
Re: credit card delinquencies
Not too likely as such losses are normally conidered as part of the cost of doing business
and not insurable, but in the event that the company did receive such an insurance payment, the insurance carrier would be subrogated to any recovery from a judgment entered in favor of the credit card issuer in the amount of its(the insurer's) payment.
And, yes, as indicated above, the card carrier could still go after the debtor for the full amount allegedly owed.
Re: credit card delinquencies
Not too likely as such losses are normally conidered as part of the cost of doing business
and not insurable, but in the event that the company did receive such an insurance payment, the insurance carrier would be subrogated to any recovery from a judgment entered in favor of the credit card issuer in the amount of its(the insurer's) payment.
And, yes, as indicated above, the card carrier could still go after the debtor for the full amount allegedly owed.
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