Can a CO still collect money?

Anonymous · ‎01-10-2015

DH is now also working on his credit too. Yay!

There is an old Capital One charge off in 2008 that doesn't seem like it was sent to a CA, he was just sued for it (and judgement is on CR too).

my question is: it is reporting as charged off every single month since 2008. Every month it goes up about $5 and is now at $2000. Does anyone know what this might be - late fees, interest? How can it keep increasing if he was already sued for the initial amount?

I'm on my phone so I can't copy and paste the account from the report, but if needed I will. Thanks!

gdale6 · ‎01-10-2015

@Anonymous wrote:
DH is now also working on his credit too. Yay!

There is an old Capital One charge off in 2008 that doesn't seem like it was sent to a CA, he was just sued for it (and judgement is on CR too).

my question is: it is reporting as charged off every single month since 2008. Every month it goes up about $5 and is now at $2000. Does anyone know what this might be - late fees, interest? How can it keep increasing if he was already sued for the initial amount?

I'm on my phone so I can't copy and paste the account from the report, but if needed I will. Thanks!

Just because an account becomes a CO does not stop interest and fees from accumulating. Same thing on the judgment, state law sets the fees and interest that can be added to the judgment as well. I would be moving to settle the judgment ASAP and once it is settled file motion to vacate on grounds its been paid if your state allows this (its gone from his CR if this can be done), you can find out by looking in the states codified laws that control the civil court system. What Cap-1 is doing every month is keeping that CO in Ficos eyes so his score cannot recover as it looks new to Fico every month. That CO entry should be gone shortly if it was CO in 2008.

RobertEG · ‎01-10-2015

+1

Reporting of a charge-off is unrelated to continued obligation to pay. It is an initernal accountng measure they either chose or were required to take.

Once the CO has been taken, it remains in your credit file every month thereafter.

The creditor can properly report an increase in the debt if it is permitted under your original contract, state law, or the judgment.

Since they have a judgment, that is a court order requiring payment, and they can, if it remains unpaid, go back to the court and motion for grant of an additional order for specific terms of payment, such as garnishement of pay.

The period of enforceablitiy of that judgment is usually 10 years, and can usually be extended by motion to the court, even after credit report exclusion of the CO or of the judgment itself.