topic Re: Not understanding 'charge off' status in General Credit Topics

Not understanding 'charge off' status

cwnewscore — Mon, 30 Sep 2013 20:29:43 GMT

I have a general question (and this may need to go to the clean-up boards):

I've got a CC account with a balance and 'charge off' status. The CA that was assigned to it also has a higher balance than the OC and has a 'collection' status. Should the OC have a $0 balance with a 'charge off' status? Is that grounds for dispute due to inaccuracy? I'm paying the CA and am almost done - I'm contemplating DV with OC versus GW to OC and CA... Blah.

Thanks in advance.

Re: Not understanding 'charge off' status

Anonymous — Mon, 30 Sep 2013 20:33:28 GMT

A charge off is an accounting term meaning the creditor does not think they will get paid. It is the same as being written off. This is something they are required to do within a certain amount of time.

It does not mean the debt is not still owed.

If the OC sells the account they must report a 0 balance. If it is only assigned to the CA, both the OC and the CA will report a balance.

You cannot DV an OC. Those are only for 3rd party collection agencies.

Re: Not understanding 'charge off' status

cwnewscore — Mon, 30 Sep 2013 20:40:14 GMT

Thank you.

So, I'd be better off writing the OC a GW request once paid with CA?

Re: Not understanding 'charge off' status

Anonymous — Mon, 30 Sep 2013 20:51:32 GMT

If the OC still owns the account you can pay them and write the CA a GW.

Re: Not understanding 'charge off' status

cwnewscore — Mon, 30 Sep 2013 20:54:01 GMT

Dangit. I already agreed to pay to CA for a reduced about. I'll have to wait for the dust to settle and write GWs to both.

*bangs head on desk*

Thanks again.

Re: Not understanding 'charge off' status

RobertEG — Mon, 30 Sep 2013 23:39:05 GMT

It's not all bad. Having paid the debt will at least give you a shot at a GW deletion of the CO.

As stated, a CO is simply the reporting by the creditor that you were not, at that point in time, expected to pay the debt.

Eventual payment or non-payment does not alter their having made that determination at that point in time.

While the debt remains unpaid, it tells both the creditor and others reviewing your CR that their prior determination is appearing more and more to be a fact...that the debt is going to be stiffed. Extremely damaging in any future determination to extend you credit.

Payment of the debt tells a whole different story. It says that their prediction that you dont/wont pay the debt did not, in fact, come to pass.

It paints the more favorable picture that you were just going through a temporary period of hard times, and that, now overcome, you did fulfill your responsibility tp pay your debt.

That would be something I would use as basis to request GW deletion of the CO..... that it does not accurately reflect you, as a consumer, and its deletion would provide a more accurate picture to future creditors.

Re: Not understanding 'charge off' status

cwnewscore — Tue, 01 Oct 2013 18:51:35 GMT

Thanks, Robert. I'll give it a shot.