i don't understand how a oc can report a charge-off, and receive tax credits/brakes for writing the debt off, and still be able to charge interest and late fees, continue to report the account 120+ past due, and still be able to collect the entire balance. How does this work? if they already received a tax credit for writting the account off, how can they still collect interest and late fees, or even for that matter still collect for a balance that has already been written off? I understand that sometimes the collection company is the one who will be receiving the money, but what i'm asking is, that since the debt has already been written off, and technically a profit made from it, in the form of tax credits, how can they continue to collect for the full balance of the debt? especially, since sometimes we pay the oc for a charge-off, which they've already received the tax credit for. it sort of seems like double billing. i don't know if i'm misunderstanding how this works.
