i have a few outstanding credit card debts that i havent made payments on for about 3 years, i just checked my credit today and it said they were charged off, does that mean that they just wrote my debt off as a loss and wont persue me with any collection actions, or did they turn it over to another collection agency?
2007-01-11 03:56:43 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Yes, the creditor has determined that you are never going to pay your debt, so they have written it off as unrecoverable. This is called a Charge-off, which is why it showed in your credit report.
One way to have that reversed is to contact the creditor and work out a payment program. A Chargeoff does not affect your credit score as badly as a Bankruptcy or Foreclosure, but it is worse than a Delinquency.
2007-01-11 04:02:26 · answer #1 · answered by bzqqsq 3 · 0⤊ 0⤋
Charge off's mean that the credit issuer has decided that they have a very small chance of getting money back from you. So, they chose to write-off your debt as noncollectable. I believe that there is a time limit that they have to collect the money. If you send in a partial payment to them, then the clock starts over again. There is still a chance that they will turn the debt over to an agency to try and get some the debt back. This will effect your credit rating and may hurt you when you try and get another loan or credit card. You'll probably have to pay higher interest rates on any other credit that is issued to you.
Good luck
2007-01-11 04:09:27 · answer #2 · answered by Fordman 7 · 1⤊ 0⤋
A charge off means the original company came to the conclusion that it was not worth their time to collect the balance. They then turned it over to a collect agency for them to continue the collect process. Most of the time the collection agency will get a percentage of the money that they are able to collect from the person.
YOU STILL OWE THE OUTSTANDING BALANCE, AND IT WILL STAY ON YOUR CREDIT RECORD UNTIL PAID IN FULL.
2007-01-11 04:02:47 · answer #3 · answered by D S 4 · 0⤊ 0⤋
A charge off is an accounting entry by the lender. It means it was preparing to write you bad debt off its taxes.
However, that does not mean the lender does not have the right to continue to collect the debt and many do.
Charge offs remain on your credit report for 7 1/2 years from the last payment. Many mortgage lenders will require you to pay them off, no matter how old their are, before they will lend you money.
2007-01-11 04:03:22 · answer #4 · answered by Anonymous · 2⤊ 0⤋
They credit card companies wrote off your debt as a loss.
Most likely, they turned your debt over to a collection company who will come after you for it.
This can result in collections showing up on your credit report as well as your wages being garnished.
2007-01-11 04:09:07 · answer #5 · answered by ? 7 · 0⤊ 0⤋
Charge off means they took the loss, but they could have sold it at a discount to a collection agency who will try to collect to get back their purchase money.
If you have the ability, I would try to negotiate with credit card companies they could accept your payments as recoveries.
Otherwise you need to sit on negative reports 7 years from chargeoff dates.
2007-01-11 04:02:59 · answer #6 · answered by cathoratio 5 · 0⤊ 0⤋
this signifies that the lending company has written it off as an uncollectible debt. a collection company has better than likely offered your account or is going to. the sequence company can benefit this for pennies on the dollar and that's likely that they are going to provide you a settlement in this account, if not that's smart to barter one. In doing so that you want the corporate to document the debt as paid on your credit document.
2016-12-02 03:17:35 · answer #7 · answered by Anonymous · 0⤊ 0⤋