Jump to content

Is it possible for OC to write off your debt as bad loan and then come after you?

Recommended Posts

Hello all,

After getting summons from attorney representing a local MN credit union I've been doing a lot of research on this website. I came across a lot of useful information, but didn't really see anybody asking the this question...

Can OC write off debt and then still come after you on the same account?

Is it legal?

Is there a way to legally ask for this information and is OC obligated by law to provide the info?

Any input will be greatly appreciated.


Link to comment
Share on other sites

Guest usctrojanalum

They can also buy insurance against the loans, HELOC's, and credit they have extended to people who are not as credit worthy and hedge their bet against the borrower defaulting. It's the main reason why AIG almost sank the entire financial sector in 2008.

Link to comment
Share on other sites

Just to make sure that I understand this correctly:

The bank (credit union in my case) CAN write off my bad loan AND come after me to possibly collect on the defaulted loan?

Isn't this a little unfair - they are benefiting twice in this case? Theoretically they can write off all of the bad loans for the year and then collect on a portion of them the following year as a profit...

Link to comment
Share on other sites

This topic is now closed to further replies.

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.