Important information? is it true?

Anonymous · ‎02-22-2008

Hello everyone just wanted to share what I found yesterday on the yahoo answers website. I thought this was very interesting if it is true. Does anyone know of this?

If it is actually a collection company, ask them to validate the debt and send you a copy of the contract that you signed with them for this account. Tell then that you researched the account and cannot find anything that shows that you owe this. They cannot prove this because you never signed anything with them. They will tell you that they are collecting for the original account holder. Chances are that the original account holder charged it off which by law they have to do after 6 months. Once they have charged it off their insurance pays them in full and the account is zero out. They sell these "fiat" accounts for 10 cents on the dollar and then the collection companies say they bought the rights to collect which is a lie because the original account was paid in full by the insurance company. Therefore cannot collect legally. I work for a credit attorney.

Message Edited by Keithsclaudie1234 on 02-22-2008 02:24 PM

Anonymous · ‎02-22-2008

Does anybody know anything about this?

Anonymous · ‎02-22-2008

I would think something would already have been done regarding CA buying CO accounts if it were true. When they charge it off, they get to take it as a loss on their taxes, as for the insurance paying anything.......never heard of that. Never heard of the 6 month charge off rule either.

treschic · ‎02-22-2008

i asked this question in a previous post, but regarding since they charged off the debt, and therefore are paid with tax credits. i was thinking that it was double billing, since they've already been paid in the form of tax credits, however the response though was that even though they did write off the debt, and have technically already been paid via tax credits, that you still have to pay, although they have to report your funds to the irs. but, the end result is that you still have to pay.

Anonymous · ‎02-22-2008

Very interesting! I was hoping it was true. hehe...

Anonymous · ‎02-22-2008

angiepharm wrote:
i asked this question in a previous post, but regarding since they charged off the debt, and therefore are paid with tax credits. i was thinking that it was double billing, since they've already been paid in the form of tax credits, however the response though was that even though they did write off the debt, and have technically already been paid via tax credits, that you still have to pay, although they have to report your funds to the irs. but, the end result is that you still have to pay.

They aren't really paid. It just reduces their taxable revenue for the year. ALL businesses offset their losses against revenue. When it is all over with at the end of the year they either have a Net Profit or a Net Loss.

Yes, you still owe the debt,even if they charged it off. When they collect on the debt(if they do) then that is in turn reported on their taxes to the IRS. Then they will be taxed on it.