2007-01-25 16:41:28 · 3 answers · asked by latangelamickey 2 in Business & Finance ➔ Credit
A charge off means that you have defaulted on your payments and are beyond 30-60-90-120 days past due. At this point the company will either sell your debt to a collections agency or they will write off the debt as a loss and collect from their insurance company.
In the first case your life is about to get miserable. They are going to call you from 9 to 9 every day until you either make them stop or you pay the debt.
In the second case, the company may still sell your debt to a collection agency though this is illegal. Once they have received payment from their insurance company they no longer have a legal claim to your debt. But, since there is currently no real oversite on this part of collection practices some companies claim the loss with their insurance companies and still try to get you to pay. Unfortunately, there is no way for you to know if they have already filed the loss as the company is not obligated to tell you one way or another.
If you have any questions regarding credit issues you may contact me at nebula7693@yahoo.com
2007-01-26 08:42:50 · answer #1 · answered by nebula7693 4 · 0⤊ 0⤋
It means you didn't pay the balance in full. Let's say you owed $1000 to the credit card company/collections agency. And you can't pay the balance in full, but only 50% of it. So you talk to the company/agency to settle for a 50% payment and charge off the rest and close your account. This is a charge off and it will state that on your credit report.
2007-01-26 00:55:11 · answer #2 · answered by Oliver 3 · 0⤊ 0⤋
Means the creditor gave up trying to collect the money. Wasn't worth their time or effort.
2007-01-26 00:49:23 · answer #3 · answered by All_Dawgs_Go_To_Heaven 3 · 0⤊ 0⤋