[BP2008]

My question involves collection proceedings in the State of: CA


How is it legal for Junk Debt Buyers attempt to collect on alleged debt that has been charged-off by the (OC) Original Creditor and most likely been paid off from some sort of credit enhancement (Ie. default insurance policy).

The Original creditor has received tax breaks and received compensation through the insurance policies paid out after default.

I have read that the OC's will destroy the file and sell-off minimal acct info allong with an affidavit ofa claim showing the balance owed at charge-off and lost note to JDB's for them to try and collect.

Is there any case law with respects to addressing these factual issues?

[jk]

the charging off of a debt does not effect the validity of the underlying debt so it is quite legitimate to collect on a debt that has been charged off by the OC.

Charging off a debt is merely an accounting function regarding a companies credits and debits for tax purposes.

if the debt is a legitimate debt, until you pay for the debt, it is still a your debt, regardless of who has exchanged money concerning the debt.