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I thought settled meant it was over


tread lightly
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So glad I found you! IN 09/04 I lost my income & stopped paying FCNB-NEWPORTNEWS acct w/ $1200 acculated interest it totaled $1500. They offered to "settle" for $600. I specificly remember the aggreement was that I would not owe them any more money. Well, I checked my CR last year & saw the acct was closed & $919 CO'd. I didn't know what CO was (still don't).

Last week I received letter from CA for the $919. I asked for the origin of the debt. They replied "Midland Funding LLC purchased all right, title and interest to the acct...was charged off and the acct remains unpaid with a current bal of $919.00"

Should I dispute the CO (what does that mean?) Do I really owe them the money?

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Welcome...

Technically, charge off is just an accounting term that means "charge against income for P&L purposes". Usually, it doesn't mean anything to the debtor. However, there are times when the original creditor lists the tradeline on you reports as "charge off / sold to another lender" and sets their balance to $0...then sells the account to a "junk debt buyer". That sounds like what happened to you.

Do you have anything in writing from the OC?

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tread - I hope this goes well and in your favor and thank you for posting.

Your posts and others like this are an example of why you should get everything in writing when settling with a CA or an OC. It bites my butt that CA's and OC's can come back later and pull this kind of crap.

Good luck and keep us updated!!!

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FYI: Settled means that the creditor accepted less than the full amount due. The derogatory notation looks bad to potential creditors and allows the OC to issue you a 1099 for the balance not paid in settlement and to sell the outstanding amount to another company (JDB) for collection all over again (as you've found out).

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