A charge-off is a writeoff of debt considered to have become uncollectible against the creditor's internal assets.
It is not a writeoff of the continued obligation of the consumer for the entire debt.
It does not excuse the debt.
Yes, it is proper for the creditor to continue to report the debt balance owed to them after they have reported a charge-off.
View the reporting of a CO as simply their placing in your file of a statement that you are not expected to pay the debt.
They would only be required to report $0 if they sell the debt.
The new owner would then be able to report the debt balance as now owed to them.
A charge-off must be excluded no later than 7 years plus 180 days from the date of first delinquency with the creditor.
The DOFD is fixed, and thus the CR exclusion of the CO is also fixed at a single, date certain.
