I have an outstanding balance with a creditor, I called one of debt releif organization. So I am making monthly payments. The collection agency put my account as "charged off". Are they allowed to put the status of my account as "charged off" eventhough I am making monthly payment?..is there anyway to get this erased from my credit report.
Thank you all for your help.
2006-07-28 05:30:43 · 11 answers · asked by Mike H 1 in Business & Finance ➔ Credit
There is no way to "erase" this from your credit report, and unfortunately, it will most likely remain listed as charged off until it is paid in full. Even then, it will likely still be listed as charged off but paid for seven years after they report it being paid off. Sorry - wish I had a better answer for you, but this is the most accurate.
2006-07-28 05:35:17 · answer #1 · answered by Jane D 4 · 1⤊ 0⤋
It is listed as charged off because the credit card company made a deal with the debt relief agency that in return for guaranteeing your minimum payment, they would reduce the amount owed and the interest rate. Basically charged off means that your debt was satisfied but not paid off. It's not a great thing to have on your credit report but much better than a bankruptcy or an open, past due account. Depending on the laws of your state, this will be removed from your credit report in 7-10 years. If you continue to maintain good credit until that point, you should be fine.
2006-07-28 05:37:37 · answer #2 · answered by cathcoug 3 · 0⤊ 0⤋
Paying the full balance as agreed is the only way, other than bankruptcy, to get it off your record. Charging off a debt means they get a tax credit against income for that amount. You may actually be paying a debt collector who bought the debt. The new credior should also be on your report, although it is sometimes hard to find. Check account numbers.
2006-07-28 05:36:36 · answer #3 · answered by thylawyer 7 · 0⤊ 0⤋
It is most likely not the origionaly creditor that is collection the debt. They most likely sold the debt to a 3rd party collector. So yes they can do that. After you pay off the entire balance, it will clear your credit file 7 yrs from the date of last activity.
2006-07-29 16:37:38 · answer #4 · answered by Paul M 2 · 0⤊ 0⤋
Your account may have been charged off prior to you making payments. Once it is charged off the status will always be charged off, you can pay it off and get the documentation from the company saying it is paid for and dispute it to have it taken off your credit report after it is PAID IN FULL!
2006-07-28 05:36:24 · answer #5 · answered by Amanda 2 · 0⤊ 0⤋
Yes,
They have charged it off as bad debt..... Next they usually send the balance to a 3rd party debt collector unless they have their own collection dept..... If it a small balance it will just sit on your credit for 7 years......
2006-07-28 05:33:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You can put an explanation on your credit report that it is being paid under a management company. You wont be able to dispute it to be removed till it is seven years old. Since you have not paid them according to their terms, they can charge off if they want. If they charge it off, they should not charge you anymore late fees or accrued interest.
2006-07-28 05:34:20 · answer #7 · answered by Fantasy Girl 3 · 0⤊ 0⤋
To get it erased it has to be paid off. Once it goes to a "bill collector" as opposed to the original creditor it is considered a "charge off" ---
2006-07-28 05:33:55 · answer #8 · answered by butterfliesRfree 7 · 0⤊ 0⤋
The term is an accounting term for there office that they no longer have you in there portfolio anymore.
http://www.bankrate.com/brm/news/debt/20021216a.asp
Debt guy explains it better.
Hope this helps.
2006-07-28 05:36:01 · answer #9 · answered by Openthathouse.com 4 · 0⤊ 0⤋
notify the company you are dealing with and it has to be erased to be charged off
thank you
2006-07-28 05:35:27 · answer #10 · answered by cooks delight 6 · 0⤊ 0⤋