Posted on: 24th Nov, 2005 12:39pm
When you're unable to pay off a debt, the creditor may issue a credit charge off. A charge off doesn't mean that the debt is cancelled or forgiven. It's not that you no longer owe the debt. Credit charge off implies that the unpaid debt will be reported as the creditor's loss when he uses accounting methods for tax purposes.
The creditor may feel that he cannot collect the debt from you; he may write off the account as a bad debt. But he doesn't lose the right to collect the debt. And, even if the creditor does not try to collect an unsecured debt (like credit card, personal loan, etc), he may sell it off to a collection agency (CA), which will then set off to collect the debt.
The creditor may feel that he cannot collect the debt from you; he may write off the account as a bad debt. But he doesn't lose the right to collect the debt. And, even if the creditor does not try to collect an unsecured debt (like credit card, personal loan, etc), he may sell it off to a collection agency (CA), which will then set off to collect the debt.
How to remove charge off from credit report
Usually credit charge off occurs when payments aren't made for more than 6 months. And, it does have a negative impact on your credit report as it stays on the report for 7 years and 180 days from the date of first non-payment of debt. So, what you need to do is, negotiate with the collection agency and try to remove the charge-off from your credit report.
If the creditor has charged off your loan recently, then request him to pull back the debt from the collection agency. Explain that you wish to deal with the creditor directly. Once the debt is pulled back, you can negotiate with creditor to settle the debt for as much as you can pay. You should also negotiate a pay for delete agreement such that even though you don't pay mortgage balance in full, the lender would communicate with the bureaus and have all information on the account removed from your report. If the creditor doesn't want a pay for delete agreement, then request him to update your account status as "Paid charge off".
However if you try to settle the debt by making a partial payment, then the creditor may report it as "Settled Charge off". A "Paid" or "Settled" charge off on a mortgage debt helps to remove the lien from the house title.
If the creditor has charged off your loan recently, then request him to pull back the debt from the collection agency. Explain that you wish to deal with the creditor directly. Once the debt is pulled back, you can negotiate with creditor to settle the debt for as much as you can pay. You should also negotiate a pay for delete agreement such that even though you don't pay mortgage balance in full, the lender would communicate with the bureaus and have all information on the account removed from your report. If the creditor doesn't want a pay for delete agreement, then request him to update your account status as "Paid charge off".
However if you try to settle the debt by making a partial payment, then the creditor may report it as "Settled Charge off". A "Paid" or "Settled" charge off on a mortgage debt helps to remove the lien from the house title.
SOL and credit charge off
As long as the SOL (Statute of Limitations) period exists, the creditor/collection agency can file a lawsuit against you and try to retrieve the unpaid debt, even after charge off. But after the SOL period (4 to 6 years, varies from state to state) expires, there'll be no lawsuit against you but the creditor or collection agency still has the right to collect from you. However, if debtors make a written promise to pay off the debt or make partial payment after the SOL expires, then in many states, the SOL starts over again.
If you have a charge off on your credit report and wish to get a mortgage, the lender would expect you to pay it off and then go for the mortgage. This is because a mortgage charge off implies there is still a lien existing against the title and the lien can only be removed once it is paid off.
If you have a charge off on your credit report and wish to get a mortgage, the lender would expect you to pay it off and then go for the mortgage. This is because a mortgage charge off implies there is still a lien existing against the title and the lien can only be removed once it is paid off.
Can I get some information on Charge Offs?
I was a victim of I'd theft it has taken me three years thus far to some what clean up the credit mess. If the 4 large criminal rings had not been raided and caught red handed with tons of fraudulent documents / accounts / drivers licenses etc in MY name I doubt I could have convinced the creditors the debts weren't mine .After much diligence , letters , affidavits, certified mail, police reports etc., I was convinced I was in good shape - however I just pulled my credit reports and found that most of the creditors charged off the debt instead of designating the accounts as fraudulent- what the hell ? What can I do now remember I have letters from all these creditors saying that after investigating my allegations and reviewing my proof , their files have been closed . But it seems what they meant to say is charged off - total bs. What can I do ?
Hi joanie,
You should contact those creditors again and ask them to remove the account from your credit report. If they don't do so, you may consider taking up legal actions. Contact a lawyer and he will assist you in this regard.
Thanks
You should contact those creditors again and ask them to remove the account from your credit report. If they don't do so, you may consider taking up legal actions. Contact a lawyer and he will assist you in this regard.
Thanks
Contact the Federal Trade Commission FTC.gov and you'll find assistance there. I would steer clear of a lawsuit at this juncture...it wouldn't be just one lawsuit, after all, and if you were unsuccessful for any reason, think of the attorney fees you'd have to eat.
Working through the credit agencies is another method, but I think the FTC is a better bet overall. You'll get educated better and you'll be likely to find the precise answer to what you need.
Working through the credit agencies is another method, but I think the FTC is a better bet overall. You'll get educated better and you'll be likely to find the precise answer to what you need.
I have a property lien due to a defaulted loan. There has been no other activity by the lien holder for ten yrs. Can I have the lien removed? Mississippi
Welcome Sherri,
Unless you pay off the lien in full, I don't think you will be able to remove the lien placed on your property.
Unless you pay off the lien in full, I don't think you will be able to remove the lien placed on your property.
i had a vehicle get charged off and and they didnt want car, but now months later they want the car and threatening to pursue criminal charges that i am harboring a stolen vehicle. what should i do
Hi montana,
They can't simply take away your car. They will have to file a lawsuit against you and get a judgment. Moreover, non-payment of debt is a civil offense and not a criminal one. You should negotiate with the collection agency and try to get a repayment plan in order to pay off the debt.
They can't simply take away your car. They will have to file a lawsuit against you and get a judgment. Moreover, non-payment of debt is a civil offense and not a criminal one. You should negotiate with the collection agency and try to get a repayment plan in order to pay off the debt.
If the lender has a lien on the vehicle, then it's their right to repossess it.
I have a consumer credit card which has been charged off. I was originally offered to make installments to pay off in 90 days during the negotion I was not allowed to have 30 days between each payment at $2200.00 each payment. So I couldn't make the deal. Now it has been charged off and assigned to a collection agency. I have attempted to call them they said they will look at it and ask for a new contact number, which is just a way of getting more contact info. What can I do to settle this debt?
Hi Applejax!
Welcome to forums!
You should keep contacting them and ask them to give you a payment plan asap so that you can pay off the debts and get rid of them. Alternatively, you can contact a professional debt relief company and take their help in paying off the debt.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You should keep contacting them and ask them to give you a payment plan asap so that you can pay off the debts and get rid of them. Alternatively, you can contact a professional debt relief company and take their help in paying off the debt.
Feel free to ask if you've further queries.
Sussane
I had a loan charged off in December 2002 by a national bank. I continued to make payments, paid the delinquent amount. In March 2006 I asked the bank if they would re-book the charge off, they agreed and we signed a new loan agreement. In December 2006, the OCC examiner made the bank charge off the new loan citing it was a violation of federal regulations to rebook the charge off, although the loan was paid as agreed. I accepted the reason, but since the bank violated federal lending regulations, I asked them to report the Dec 2002 charge off and delete the Dec 2006 charge off from my credit file since that loan agreement was fraudulent. They refused and are still reporting the Dec 2006 loan. I have disputed this with the credit bureaus and written letters to the bank with no success. Can legally do this?
Hi be,
Well... I will suggest you to contact an attorney and take his opinion in this regard. He will let you know how you can deal with this matter and whether or not you will be able to file a lawsuit against them.
Well... I will suggest you to contact an attorney and take his opinion in this regard. He will let you know how you can deal with this matter and whether or not you will be able to file a lawsuit against them.
I have a lenders report on my self. I shows that a bank i had almost 6 years ago has a deposit related charge off but the reort says paid was charge off. I contacted the bank which has this and they said it was never sent to collections due to an error. I want to know if in the error created that i have wiggle room for negotiating this its only $120 but I am lost in the fact that they wont remove it from my report due to their errors in paperwork.
Hi mr heath,
You should definitely contact the bank as well as the credit bureaus and dispute the item with them. This will help you in removing the charge off from your credit report.
You should definitely contact the bank as well as the credit bureaus and dispute the item with them. This will help you in removing the charge off from your credit report.
how long does it take if you don't pay your credit debt to be forgotten California, I heard it take 4 years