10 yr old debt was "written off" on my credit report.....?

Question

as a $0 balance owed..fell off after 7 yrs. The same bank gave me a vehicle loan without acknowledging the old debt until after I set an account for automatice vehicle withdrawal payments. then they took money from my account toward the debt that was "written off"... how is that possible??? they re-established an relationship with me leaving me to assume the old debt was wrote off .. then they went into my account and took the old debt money? where's my rights?

Answer 1

They did not know about the charge off when they ran your report because the SOL ran out and had to remove it from your account. However, their recovery dept check it every week or so  to see if any new assets been added. It's called the right of setoff. I suggest you close your checking account and go to a different bank and just mail in the payments monthly.

Answer 2

The moment you re-established credit with them the old account was re-established as money owed to them....

You basically became known to them again just by opening credit with them / re-establishing business with them.

Answer 3

they can reage the account

Answer 4

Just because the debt was written off doesn't mean they are prevented from collecting on it. A written off debt is an accounting term so they can stop carrying your debt as an asset, and instead write it off as a loss for tax purposes.

From what you have just described, you have no rights of recourse. You gave a bank that you owed money to access to your bank account. I suspect that somewhere, buried in all those papers you signed to establish a new relationship with them, is a provision giving them the right to do what they just did.