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How long before charge off?


travelgrl
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I have a Dillards Acct that I have not made a payment on since FEB 2003. They are reporting as 90 days past due and seem to be pulling my CR 2 times a month at least. They have twice threatened to go legal that was back in June and still I have not heard anything from them. They still call a couple of times a week and leave messages, but dont they have to charge of after 180 days? Who does Dillards use as a CA?

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Thought I would add that just because it gets charged off does not mean that they can't continue to collect. The money is still owed and if you do pay them they will have to count it as income, which kind of cancels out any tax benefit they would receive by charging it off. Of course this also depends on the tax year it is written off and the tax year any payment is made on it with respect to equating the two.

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Yes I know that I am not off the hook in paying it.

I was just referring to your comments about them continuing to collect and when it needs to be charged-off. All I was saying is that they can continue to pull your credit reports, call you several times a week, send you letters, etc., whether it is charged-off or not. I made the assumption that part of your concern was them continuing to collect since you mentioned it.

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They can have up to 210 days depending on their billing cycle and how they do it internally.

According to....?

According to the law. :) Hold on, let me find it. What it basically equates to is if the 180 day mark falls on the first day of the next billing cycle then the account does not have to be charged-off until the end of that billing cycle. Depending on the billing cycle a creditor uses, they can almost always make it 210 days, instead of the 180 days.

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FDIC Law! Yippee!! I found it. :)

{2 For operational purposes, whenever a charge-off is necessary under this policy, it should be taken no later than the end of the month in which the applicable time period elapses. Any full payment received after the 120- or 180-day charge-off threshold, but before month-end charge-off, may be considered in determining whether the charge-off remains appropriate.

Click here for the full text

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