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Can someone explain "Charge Off"?


shaneIrish
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A charge-off or "profit / loss" is a financial tool the creditors use when an account defaults. The company writes it off as a business loss and reports those losses as well as their profits to the IRS at tax time.

In extreme cases, the IRS can consider your charge-off as income, and hold you liable.

Since you paid it off, it should report as "paid charge off". It will stay on your report for 7 years. Your job is to dispute the account and try to get it to drop off.

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