And that person still owe's the difference between the pay off price, and the auctioned off price. Which is a considerable amount.
2006-12-21 18:03:11 · 7 answers · asked by dragonfly123 1 in Business & Finance ➔ Credit
A "charge off" generally means the creditor has simply taken a loss on whatever the difference is between what they got and what was owed, but they are done attempting to collect.
Those don't look good on credit reports.
2006-12-21 18:11:43 · answer #1 · answered by C-Man 7 · 0⤊ 0⤋
When you sign a contract with a company that company must then show your debt as their asset. At that point they owe sales tax, income tax, b and o tax in some states. At what ever point a creditor decides the debt will not be satisfied they do not want to continue to show it as an asset on their financial report and it is "charged off" they will then deduct what ever amount they paid to whatever tax and the unpaid dollars are put on loss side. As to what it does to the individual that owes the money.....its not good in terms of your credit score. It is better in terms of a wage garnishment most generally however with the new credit laws which are very much in favor of business and not consumers....it may still be collected by a third party. I'm not positive about how that will work. If you do her from a third party requesting payment prior to making any payment at all, request from them "proof of debt' if they do not provide this then do not pay them a dime.
The difference in the amount the car was auctioned off for and what you owe is the amount they "charged off' i doubt they will continue to try to collect. The blemish will stay on your credit report for 10 years. The laws may change soon with a change in the majority house rule???? Good luck on this
2006-12-22 04:06:58 · answer #2 · answered by shellidawn06 2 · 0⤊ 0⤋
It says charge off BECAUSE it was repossed.
It means that is was written off by the company as a bad debt and that the person did not make meet their obligation to pay.
Yes, the person is still responsible for the difference, though it will not go on their credit report as a payment on the car. As the debt is payed, it will not show on the report, only as a charge off.
2006-12-22 02:10:51 · answer #3 · answered by TKinMI 2 · 0⤊ 0⤋
The absolutely free reverse vin check sites generally provide fake information. To get real information, money will have to be paid. The free searches provide fake information so they can get your email address to send spam.
Stay away from shady reverse vin check sites, most likely you won't get any information after you make the payment. Not to mention you won't get a report and you won't get an answer if you try to call for a refund. Stick with a reputable reverse vin check site like http://www.reversevincheck.net that has been around since 1995.
2014-09-25 19:44:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It means you will not have to pay the ammount but it is a terrible mark on your credit. it means the creditor tried and tried and tried to get you to pay them off but they could never get the money out of you. so it doesnt make other credit companies want to give you credit.
2006-12-22 02:11:11 · answer #5 · answered by moonrat1984 2 · 0⤊ 0⤋
it means that they are a dirtbag and didnt pay for there car.
the next time they try to buy one, it will be at a used car dealer buying a piece, paying 24.99% interest.
ps all the other answers are correct
my credit motto " pay on time, and you'll be fine"
2006-12-22 04:37:24 · answer #6 · answered by bh 1 · 0⤊ 0⤋