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Charge off


bmmitchell1
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A charged off account remains 7 years from the date of 1st delinquency of the original account. The first step in getting any charge off removed is to ask for validation. There is a link at the top of this forum titled "debt validation" as well as a sample letter.

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Edited by kevin3344
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Charge off is just an accounting term that means "charge against income for tax purposes". It does not mean much at all to us poor debtors. We still owe it...they can still try to collect...they can still sue us if we don't.

If the credit report says "written off/sold to another lender" then all that means is that the OC has given up trying to collect. However, the "another lender" is probably a junk debt buyer who will still try to collect and may sue. Whether or not you actually owe the JDB anything is something for the courts to decide.

Now, just to further confuse things...if the OC says "charge off", sets the balance to $0, and issues you a 1099c for the "found income", then you owe the IRS some money. Some people say that the 1099c protects you from any further collection efforts, but personally, I'm not sure about that.

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Ok so let me see if I'm getting this right. I can pay off the charged off account but it will not help my credit right? If it won't help my credit, then why pay it?

What is a PFD Agreement? CO?

I also have 4 student loans on my Experian CR. They are currently OPEN/CURRENT and in deferment, yet they are showing up negatively on my CR. I put in a dispute to EX to have them removed since they are in a current status. Was that the right thing to do?

Brandy

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Ok so let me see if I'm getting this right. I can pay off the charged off account but it will not help my credit right?

The FICO model considers the fact that the account was charged off in the first place to be more important than the fact that you finally paid it off.

If it won't help my credit, then why pay it?

I ask that question all the time.

What is a PFD Agreement? CO?

PFD= Pay for Delete

CO= Charge off

I also have 4 student loans on my Experian CR. They are currently OPEN/CURRENT and in deferment, yet they are showing up negatively on my CR. I put in a dispute to EX to have them removed since they are in a current status. Was that the right thing to do?

Probably. Students loans are a different animal. Others can help you there

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  • 2 weeks later...

a charge off is basically last resort for creditors, the last last resort. they run the numbers and say. 'we've been trying to get this money for a year now, so, lets cut our losses and our snively accounting manager will be able to get at least a portion of the balance back throght profit and loss mumbo jumbo tax stuff that we as general consumers dont undesrtand.

SO, with that said, if say your credit card account gets "charge off" showing, and then one day you say "DAMMIT! i knew i should have paid them, and you want to "make good" and pay your debts, it really does no good, actually might be worse.

the reason is because after a charge off, you are last resort, and there really is not other step after charge off. so when you decide to pay it, its basically a day late, and dollar short. because future and potential creditors see that things got so bad that they had to charge off your account and basically write you off and take a loss before you decided to pay your debt. so, only pay if if they agree in writing to DELETE it, but usually wont becuase they already wrote your a$$ and your debt off. basucally they are pissed and gave you by then probably dozens of chances.

best thing to do is wait and hope that with the charge off they removed your from their data base, so whe you dispute it "not mine", there is noting to verify, and it gets deleted. thats exactly what happened to me numerous times after dozens of disputes.

keep disputing no matter what, its our right as us citizens to have accurate reports, and all you are doing is saying, hey i think some things are inaccurate. maybe it says you owe "$1200" but actually its $1199",,,,THATS INNACURATE! so, to be sure, you are just simply disputing it to get verification of said debt and accuracy.

i love this stuff, f the NBA

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a charge off is basically last resort for creditors, the last last resort. they run the numbers and say. 'we've been trying to get this money for a year now, so, lets cut our losses and our snively accounting manager will be able to get at least a portion of the balance back throght profit and loss mumbo jumbo tax stuff that we as general consumers dont undesrtand.

Sorry...pretty close to flat out wrong.

"Charge off" is just an accounting term. The only real meaning it has is that the OC makes a change on their P&L statement. They move your account from the "we're pretty sure we're gonna get paid" column to the "we're gonna set this aside and work it later" column. The responsiblity for collecting the account moves from the "normal business" department to the "we might have to work a little harder" department. They haven't given up...they haven't sold it...they haven't done nothing with it.

If the account is only listed as CO...they'll be happy to take your money. If its been CO'd for awhile (maybe a few months, maybe a few years) they may even take less than whatever they're reporting as the balance.

At some point (the IRS gives them 3 YEARS to make this decision), they'l move it to the "Write off" category. That's completely different than CO. When an account has been written off, they've given up trying to collect anything. Then...they won't take your money. They might sell the account...they might not.

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