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


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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.

Thanks

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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.

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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...

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