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[Discussion] Question about Charge-offs

February 27, 2021 at 07:15PM

For several years I did most of my banking with BofA as I moved around a lot, but settled for a while in San Diego and opened an account with a local credit union with the goal of getting a decent car loan/rate. To start, I opened a checking account with a small deposit and would eventually secure a car loan. In short, I had 2 separate accounts.

Since I still did the bulk of my banking elsewhere, I didn't pay attention to the checking account and there was some monthly subscription that caused it to become overdrawn. It became delinquent in March of 2017 and they apparently charged it off the next month. The overdue amound was $175. I did pay attention to my car loan, paying that off every month. In Oct of 2019 I was in a branch and the manager informed me of the $175 shortfall, and so I paid that amount in full. I was thinking the account was merely frozen and this would settle the tab. I didn't know it had been closed and charged off. I'm not disputing that I owed the money, even though there was never any debt collection attempts for 2+ years.

However, if they wrote off the account in 2017 then how is it they were asking for the account to be settled in 2019? In other words, if I'm paying them money towards an account, and they accepted that money – doesn't that imply that this debt was never really written off, or that the account was still valid? And if they take money in 2019 for a write-off in 2017, do they have to amend their earnings/taxes?

Thanks!

submitted by /u/joninsd
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