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Cdman
Registered User
Username: Cdman

Post Number: 1
Registered: 11-2003
Posted on Wednesday, November 19, 2003 - 12:20 am:   Edit Post Delete Post Print Post    Move Post (Moderator/Admin Only)

I am dealing with FUSa and have a question(s):

I had a credit card with them that went past due. I made arrangements to pay on it to bring it current. It was over 180 days past due and they went and reported it as a CHARGE OFF. (despite their acceptance of my re-payment plan).

They are now bugging me for the money. My thought process has been "what's the point of paying them now since there is a CHARGE OFF on my report and they won't remove it"

QUESTION 1:
If they CHARGE OFF a debt (and report it as charged off), then the debt has been written off and I don't owe them anymore. Correct?

QUESTION 2:
By them reporting the debt as CHARGE OFF, I assume they do this for tax purposes so they can then take a deduction for bad debt. Is this correct?

QUESTION 3:
The FUSA rep says if I don't pay him he will garnish my wages. He tells me that they can do this by simply showing the court my account history. The court will issue a judgement and allow garnishment of my wages. He tells me all this will be done without being required to notify me or allowing me to have a day in court.
IS THIS TRUE? Can they just garnish my wages without due process?

Thanks.,
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Mike_chpt13
Registered User
Username: Mike_chpt13

Post Number: 2
Registered: 11-2003
Posted on Wednesday, November 19, 2003 - 03:06 am:   Edit Post Delete Post Print Post    Move Post (Moderator/Admin Only)

Question 1:

No. You still owe the money. Charge off only is to tell other creditors that they tried to collect and could not. You still owe the money

Question 2:

No. Credit reporting and how a coorporation does there taxes are 2 seperate things. Yes a bad debt is deductable from income. If they deduct the amount, then if and when you pay that amount, then they must include it as income. However, sometimes when a creditor actually does charge off an account, they will send you a 1099 as that "Charged off" debt is considered income to YOU. This is not the case when FUSA shows a charge off on an account that is actually a BK account.

Question 3:

Yes they can garnish wages, bank accounts. Yes they need to have a judge order that. No, they can't do it without you knowing. They must sue you, and serve you a summons to appear at the hearing. Should you decide not the attend, or have moved and they can't serve you, then yes they can get a default judgement
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Christine
Board Administrator
Username: Christine

Post Number: 1647
Registered: 09-2002
Posted on Wednesday, November 19, 2003 - 03:17 am:   Edit Post Delete Post Print Post    Move Post (Moderator/Admin Only)

Yes, Mike - BUT: whether they can garnish wages and how much they can take is STATE law.

And once a creditor issues a 1099, they can no longer collect, so you don't normally see that.

CDman, any collection calls should always be recorded. If they provide false or misleading information, you have at least some counter claims when they sue.

What was the charged off amount?

"I made arrangements to pay on it to bring it current. It was over 180 days past due and they went and reported it as a CHARGE OFF. (despite their acceptance of my re-payment plan)."

Did you make any payments?

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