Stop Collection Agency Harassment

A charge off is a term used on your credit report that means that the OC (original creditor) wrote off that particular account as a loss on their books. An OC has decided that account is unlikely to be paid.

Under the FCRA, the act states that after 180 days of non payment to the OC, that account can be charged off. It is deemed a loss by the IRS. The account is worthless. At that point, the OC may or may not sell the “junk debt”. If it is sold to a JDB, it is NOT sold for the balance due. It is sold for pennies on the dollar – a bargain, dirt cheap, and how much is pennies on the dollar?

The OC will contact the CRA – the 3 bureaus – and change the status to charged off debt. This is a negative item and derogatory which lowers your credit score. The date of that item to remain on the credit reports is for 7 years. Charge offs can be removed from the credit report. Of course, not all derogatory items can be removed if they are legitimately placed on the credit report. Most credit reports are full of errors and consumers accept the fact. You can dispute items in question to all the credit reporting agencies.

Taking the time to work on your credit report and raise the score is a tedious process but it can be done.

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