Valued Contributor
AndySoCal
Posts: 1,939
Registered: ‎04-07-2009
Re: Understanding agencies that buy your loans once defaulted

I would disagree. with the distinction  if it is in delinquent or not.  Factoring company owns the debt the difference is how they acquire the debt. 

 

@RobertEG

 

The charge off of the account is the  accounting transaction that says they think they will be paid the moeny owed.  This adjusts the total accounts recievable to what  creditor thinks they will recieve payment for. The usual booking enty is something like credit accounts receivable for $$  and deebit the uncollectible accounts expense.  What happnes to these acocunts after they written off they will continue to try to collect on the account or they will sell the debit at a discount.

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