I’m not familiar with some of this terminology as I’ve never been in debt like this before…
What does “charged off” mean and how do I find out about it? and when you say ‘creditors’, does that mean Chase (since they sold the debt–they don’t have any control, or do they?) or does it mean the collection agencies?
And when you say offer them 25¢ on the $1…do you mean to base that percentage on the original $4350 debt with Chase at the time I stopped making payments or to base it on what the collection agency now says I owe ($8k something)?
I am deeply sorry that I have spoke above you. I truly regretful of that. I have been consulting and dealing with creditors for so long I forget that some people haven’t.
Creditor – That is the person or persons that has given credit. I use creditor to include collection agencies as well. Others may disagree, but that is what I do.
Charge-off – that is what happens to your account after you have gone beyond 180 days late on your account. By law the creditor has to “charge-off” the account and consider it a liability instead of an asset.
Chase, if over 180 days late, has charged off that account and “assigned” the account to a collection agency to collect. The account still belongs to Chase and not the collection agency.
The collection agency is given a certain time fram in which to collect this debt (for a commission) or Chase will take the account back and “assign” it to a different collection agency.
After a couple of years of assigning this account to collection agencies then Chase may then decide to sell the account to a third party. These are “Junk Debt Buyers”. Rarely, if ever, will you see an account sold to a JDB before 2 or more years.
Most likely, in your case, the account has only been assigned to a collection agency.
The percentage of $.25 on the $1.00 is the percentage you offer the company trying to collect the debt, whether it is a CA or the original creditor (OC). Of course, you have a better chance of getting that percentage with a CA than an OC.
Does that answer your questions?