A charged off debt is an accounting procedure. It does not cancel your debt. You still owe the full amount. If a portion of your debt is cancelled...you are suppose to receive a 1099-c and it is taxable income...with certain parameters and exclusions. And yes...a junk debt buyer can receive more than they paid for the debt...but there are many ways to try to combat it...and much of it revolves around paperwork.
That said...if you take out credit ...you owe it...no matter what procedures are in place to deal with all ramifications. Someone takes a loss on the debt you dont pay. You are ripping off the creditor...within the legal system.
Btw, claiming one person’s experience in dealing with debit collection in a court case is just how it is everywhere..is not correct whatsover.
It depends on your circuit..and the day of the month and what has just come down within the court system.
For example
A time barred debt can still be collected. (but you don’t have to pay it if you know that it is time barred). Just how the Junk Buyer can do it will depend on your Circuit.
You cannot get the benefit of charging off debt and then sell the debt as if it still exists.
The purchaser owns it at whatever his cost basis is... nothing more..
If they want to collect 100% of face when they paid 2.7% of face they need to have had the debt ASSIGNED to them ... and it must be on the books and not charged off by the seller. The seller must take that 97.2% bath,, and they lose all collection rights.
You can’t have 2 separate entities profit from one debt and both claim 100% of the face value... That is fraudulent ... That is what junk debt buyers do on a regular basis... and it is illegal but just not challenged. When challenged they always back down and slink away.
That said...if you take out credit ...you owe it...
************************
Stolen card number, Didn’t owe anybody anything ... useless custserv supposedly took care of it years prior..