@Rocco718 wrote:
@Domino wrote:
Hi there. I have a Capital One charge off of $1572 from 2021. I'm at a point where I can pay it but the account seems to be in limbo. Capital One says a collection law firm has it but the law firm said they sent it back to Capital One because I no loger live in a area they operate in. Any advice? I've talked to both Capital One and the law firm a couple of times now and no one seems to know what to do.
Capital One no longer has the debt on there books. Once they Charge off a debt, it means they've sold it for penny's on the dollar to a collector.
This was 4 years ago, so some collector has it and will eventually be in touch. When they do, make certain to have them validate the debt BEFORE you pay it. Use an affidavit when you contact them. However you proceed be tactical. Good Luck
A charge off does not mean an account has been sold. It simply means the account has been closed to future charges and treated as a loss. Not all creditors sell charged-off accounts. There are collection agencies that do not purchase debts and, instead, collect on behalf of original creditors.
If, on your credit report, an original creditor is reporting that an account is charged off but still shows a balance owed, that means the creditor still owns the account. Any collection agency attempting to collect the debt is collecting on behalf of the original creditor,
However, if the creditor is showing a $0 balance owed, that means it has sold the account. When a creditor sells an account, it is required to up date its reporting to reflect a $0 balance because the balance is now owed to the new owner.
