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Chargeoff means that you did not satisfy debt, and the company took the lost.This is placed on your credit as debit being owed and charged-off.

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โˆ™ 2005-11-26 22:01:37
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Q: What does chargeoff mean?
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How do you provide additional information about a charge off?

All of the credit reporting bureaus allow you to dispute transaction lines found in the credit report. For actions like chargeoffs, the dispute is really adding a note to the file that one will hope a creditor will read when considering you for credit. You will need to know very specific information concerning the chargeoff (including the account, the amount, when the chargeoff occurred, etc.) and your statement will need to represent why the chargeoff should not be considered when applying for credit.

If you settle a chargeoff or collection does this increase your credit score?

Yes! I settled 2 collection accounts and my score stayed exactly the same.

What does 'chargeoff' mean?

It is a term used by credit card companies to indicate they are ending attempts to collect the debt. Then they list it as a bad debt tax loss. This does not mean the account holder is "off the hook". More than likely the account will be bought for pennies on the dollar by a third party collector. The REAL collection process will start, which may, if the debt is not satisfied, culminate in a lawsuit.

What does it mean if a credit card's status is 'internal chargeoff' and the debt is being pursued by a law firm?

More than likely been sold to a third party collector work with attorneys that specialize in collections. The first contact is usually via mail, seeking "cure and remand." This is sometimes the precludes a lawsuit.

Defenses against lawsuit on chargeoff account?

You need to find out your state's statue of limitations. If the debt is old, then you can back sue the collection agency. You can also go to court and reach an agreement.

How and when does a collection account become a chargeoff?

When the lender decides to classify it that way. Some will automatically charge it off when it is 90 days delinquent, others will never. Charging off a debt is just an accounting entry that keeps the bank from overstating their income and assets. It does not mean the debt is no longer owed or that they will stop trying to collect it.

How does diversification affect financial institions credit risk exposure?

Generally, diversification helps reduce the overall credit risk exposure for financial institutions by reducing their overall expected chargeoff rates.

Where can one get credit repair letters?

Credit repair letters are sent to lenders to demonstrate an attempt to settle debts and are the first step in financial repair. Chargeoff, Creditinfocenter and eHow are great places to find boilerplate letters.

If a chargeoff is removed from your credit report after 7 years do you still legally owe the money?

Perhaps. It would depend on the type of debt and the laws of the state in which the debt was incurred. It could very well be that the SOL has expired and the debt is no longer valid.

How do you pay a settled and paid charge off?

Once a chargeoff has been marked "paid charge off," the borrower still owes the debt, but from an accounting standpoint, the lender has decided that they will not be able to collect that debt. Also, the charged off amount will stay on your credit record regardless of the next steps that you take. If you pay off that chargeoff, the lender will not adjust the trans line in the credit report. However, if you are trying to "make it right," you may send a payment to the lender at the same address that you sent payments prior to when collections started (be sure to mark the check/EFT with your account number and name).

If a repo now shows up on a credit history with 'charge off' does this mean that the balance needs to be paid off even if the repo was two years ago?

Yes it will need to be paid, the good news is the bank will more than likely take a settlement, and only offer to pay them the settlement if the take the repo and chargeoff off your credit, the will play ball!:) for more info on repossessions, you can goto my website at

What is gross charge off and net charge off?

Loan or debt which have been delinquent and subsequently written off are classified as Gross Chargeoffs. however in certain cases, partial recoveries may be made at a later date. The net charge off is the gross Chargeoff minus the recoveries.

Can a credit card company collect on a debt over seven years old?

Yes. Even though the chargeoff line item should come off of the credit report in seven years, the credit card company may attempt to collect their debt for as long as they wish (assuming no fair credit collection laws are broken in the process).

What happens to a chargeoff account when it is finally paid?

It gets updated to a paid charge off and continues to show on your credit report for 7 years + 180 days from the last time you paid as agreed immediately preceding the charge off. The month/year the account gets updated to is what primarily affects your credit score. Under certain circumstances, it could cause a decrease in your score.

If a forecloused home has a chargeoff?

Has your home been auctioned out ? If not, then you need to speak to a Loss Mitigation Consultant immediatly to help you with this issue. They can provide the help that you need to save your credit, and give you educational options. Call Access Point National at: 704-910-3855 for further assistance. Once a foreclosure has finalized, and they have sold this home, you are left a debt that will remain on your report for 7 years.

Does paying off a settlement improve your credit score?

Generally, no. When someone settles with a lender, that lender has already notified the credit bureaus of the bad behavior leading up to the negotiation of a settlement. In more than 75% of the cases, the lender has already sent a chargeoff transaction line to the bureaus which will stay with the report for the next seven (7) years. Most lenders don't indicate that a borrower paid off a settlement and they are not required to do so. So, if you choose to pay the settlement, the only way you MAY get a benefit is to use the part of the dispute process with the credit bureaus that allows you to add a note to a given transaction line (again, your missed payments and/or chargeoff will not go away for a while), so your note should be clear as to (1) when you agreed to a settlement, (2) the terms of the settlement and (3) the date on which you paid the settlement off.

How do you dispute a chargeoff account that the creditor refused to validate?

Technically this should be very easy. Write a letter to the (3) credit reporting agencies stateing that this information is/may not be accurate. They will then request that the creditor verify the information. If the creditor does not respond in 30 days then the entry should be removed. That's the way the law is written, though some credit agencies will give more time to the creditors before removing.

Better to pay in full or settle a credit card debt?

In most cases, it is always better to pay the credit card off in full because the payoff is best for your credit rating. If you are able to settle the debt with an agreement that states that the credit card company will not send an adverse action transaction (e.g., chargeoff, workout, etc.) to the credit reporting bureaus, then you are better off settling.

If the principal is paid in full and the only payments left are interest from late charges can they repossess your car?

YES. Not usually. In New Jersey if you have more than 90 % equity in the vehicle they can no longer take the car. BUT they can still damage your credit for 7 years and try to collect in court. In practice they almost always damage credit with a chargeoff or a closing of the account but they rarely sue for small ammounts though they still can.

What does a voluntary repossession do to your credit?

Any repossession will negatively impact your credit. Organizations using the credit report do not differentiate between voluntary and non-voluntary. Rather, the organizations see that you were not responsible with credit and what you purchasd needed to be taken away. Generically, a repossession is considered the same as a chargeoff or writeoff, so the impact on the credit score may be anywhere from 50 to 200 points, depending on one's personal credit situation.

Will having a payment plan with a collection agency greatly reduce your credit score?

No. Once a person is being threatened by a collection agency, there is a high liklihood that the damage to the credit report is already done - a chargeoff or collections transline will already be in your credit report. Having a payment plan merely gets the debt paid and on-time payments are usually NOT reported (however, if you miss a payment, that company can and will send a negative tradeline to further damage your credit reputation).

Who was king Henry and what did he do?

he was a mean person who lived with mean people in a mean castle on a mean hill in a mean country in a mean continent in a mean world in a mean solar system in a mean galaxy in a mean universe in a mean dimension

How do you spell mean?


Can you pay a debt to the original company once it has gone to collection?

The only person that can accept payment once an account has been charged off is the purchasing agent. When a collection agency purchases your debt, they purchase all legal rights to it, including any payments made towards the account. If you were to pay the original creditor after a chargeoff, they are required to forward that payment to the purchasing agency and this can be a rather lengthy process. Understand that many debts that go to collections are interest bearing and the longer a payment takes to get to the correct party, the more you may be paying in the end.

Is an arithmetic mean a weighted mean or a weighted mean an arithmetic mean?

The arithmetic mean is a weighted mean where each observation is given the same weight.

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