Remove Charge Offs

Charge-offs are often mistaken for being cancellations of a debt, but this is not the case. Charge-offs are normally performed by credit card companies and occur when an account is between 180 days and six months delinquent in minimum payments due. The credit card company is basically stating that the amount charged to the card is unobtainable and is therefore a loss and removed from their financial records. However, the company can still legally pursue collection of the amount and, normally, the account is turned over to a collection agency at this point. Credit card companies are legally required to report all actions to credit agencies. When they determine a debt to be uncollectable, they submit a “Charge-Off” notice to … Continue reading →