The Truth of Credit

Often times when I speak to a debtor and explain that we will go ahead and “process” the account. There is often confusion as to what the next step is. An “R-9 Charge-off” is one step away from a civil judgment. Most times I explain a charge-off in no so many words.

“Basically it is an accounting entry where the bank at one time thought of you as an asset when you were making payments. Now after not receiving a payment or not paying pre-arranged amounts they now consider you a liability are now willing to use their rights to get their money back”.

Obviously, and I’m being general in this figure but if you owe less than $3,000 more than likely “most” major credit card companies (Chase, Discover & Amex) are not going to go after you legally. What they will do is pound you with collection calls and hit you with an INSANE interest some where in the hemisphere of 30%. Not to mention your credit and this one hurts for the most prolonged period.

So here is a brief list of creditor’s rights. Some states i.e. Florida & Texas have some different rules but here is a good answer to that age old question “what can they do to me”.

http://smallbusiness.findlaw.com/business-operations/debt-collection-creditor-rights(1).html

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