thegame26 Posted March 9, 2007 Report Share Posted March 9, 2007 I have an account on my credit report that is a charge off. Under the remarks section of that account it says: written off profit/loss. I remember reading somewhere (I don't remember where) that if an account is written off it basically means the creditor has given up on ever getting any $ and your protected future attempts and the account is basically considered 'settled'.I ask because I've had other accounts charged off in the past without this terminology; it simply says charge off with no remarks. Link to comment Share on other sites More sharing options...
LadynRed Posted March 9, 2007 Report Share Posted March 9, 2007 Well, forget what you read, it's not true.Write-off, charge-off.. SAME THING. No matter what words they use its' the same accounting function.. and that's ALL it is. They move the non-performing (not paying) accounts off the books, chalk it up as a loss and take their tax breaks. The creditor is keeping it's stockholders happy by not carrying bad debts on the books. It does NOT mean you are off the hook for the debt, you still owe it, it is not cancelled. Most of the time the creditor will sell the bad debts in huge portfolios and whatever collection agency or junk debt buyer that gets it will have every right to try to get the money out of you. Link to comment Share on other sites More sharing options...
unusualsuspect Posted March 12, 2007 Report Share Posted March 12, 2007 Charge off or write off it's all the same...The original creditor is giving up as it is uncollectible on their end. However, if you should ever pay them in the future it is pure profit. OC's love getting paid when any charged off account pays even pennies on the dollar. Link to comment Share on other sites More sharing options...
willingtocope Posted March 12, 2007 Report Share Posted March 12, 2007 Charge off or write off it's all the same...The original creditor is giving up as it is uncollectible on their end. However, if you should ever pay them in the future it is pure profit. OC's love getting paid when any charged off account pays even pennies on the dollar.Let me try to clarify something a bit here...If that's all the report says..."charge off" or "write off"...then, its just an accounting term that has no real benefit to us poor debtors. We still owe them...they'll still try to collect. IT DOES NOT MEAN they've given up. They have only moved it to another category on their books. They may be back...the FDIC does have some rules about this, but, its unclear whether credit card issuers must follow them. The IRS also has some rules, but the IRS lets them keep it on their books for 3 years after the CO...On the other hand, if the reports says "write off / sold to another lender" and the balance is set to $0...then...they will probably sell the debt to a junk debt buyer...and the JDB will probably be calling you shortly. At this point, the OC may also issue a 1099c for which you will owe taxes... Link to comment Share on other sites More sharing options...
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