Is it legal for a creditor to sell my account after they charge it off?
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Is it legal for a creditor to sell my account after they charge it off?
Asked on March 17, 2012 under Bankruptcy Law, Tennessee
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
There is nothing illegal for a creditor who is owed money to charge off an accoint owed (write it off for book keeping purposes) and then sell it to a collection agency. Such practices are common throughout the United States and are done as a means of clearing accounts receivables for on a given company's book of business for its valuation.
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