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Closed 2nd mortgage not on credit report but getting called from collection agency. Whats the deal?
Anonymous2 views2 answers
While trying to negotiate a loan modification with Chase, I found out (as I was writing the settlement check) that they decided to charge-off my loan and close the account. Recently I started getting calls from a collection agency stating that they are representing their client, Chase, and that they need to talk to me immediately to settle my loan.
I pulled my credit report and the Chase account says closed and I don't see anything else on the reporting suggesting that I owe anyone else any money.
What's going on with this case? Do I still owe someone money? or did Chase close my account and I am done?
There is distinction between the terms: closed; charged off; satisfied; released.
The term closed means what it says: Chase has closed the account. It is no longer seeking to collect money on the account. It may have assigned the account to another party. It may have charged off the account.
A charge off is an accounting issue, not a debt issue. A charge off means that the bank no longer treats the account receivable as an asset.
That does not mean that Chase can not sue on the obligation. If it sues and collects money, it can reverse the charge off.
Yes, you still owe money on the note, since you did not pay it off so as to satisfy the obligation. "Closed" does not mean the creditor can not try to collect.
Peter Robert StonePersonal Injury LawyerCitrus Heights, CA ·
Closed, means you can't take any more money on the account or use the credit card. It is not the same as satisfied or paid off or settled.
The collection agency can call or, or they can turn it over to an attorney to file a lawsuit.
