What Happens In A Credit Card Charge Off?
Posted on September 18, 2009 at 2:04 am
I'm curious about this concept and i have some questions on it here
Is a credit card charge off a good thing or a bad thing?
How will this affect my credit?
If I receive collection calls does it mean that it has charged off?
thaks for your time
Posted on September 18, 2009 at 2:46 am
A credit card charge off entails various things. First, it will be reported as a "bad debt" on your credit report, and it will remain notated on your file for seven years from the date the card first charged off. You may still be contacted by debt collectors even if the loan has charged off.
Posted on September 18, 2009 at 3:05 am
In a credit card charge off either the account will be transferred to the creditors' in-house collections department or a third-party collections agency.
Other possible results of a charge off include the debt being sold to a junk debt buyer, or a collection attorney.
Posted on September 18, 2009 at 3:29 am
so that means in spite of a credit card charge off status, i am still liable for paying for the debt??
can a bankruptcy remove that?
Posted on September 18, 2009 at 3:45 am
A credit card charge off does not exempt you from your responsibilities as a consumer, so yes, you are still obliged to pay for it.
And no, a bankruptcy will not remove it from your credit report. Besides, bankruptcy has drastic effects on your credit file. It will remain on your credit report for 7-10 years, depending on the chapter that you filed for.
It really should be considered as a last resort in getting out of debt.
Posted on September 24, 2009 at 1:37 am
I am not 100% certain about this fact, but when a credit card charge off is transferred to another debt collection agency, the new collectors handling the debt may be permitted to add interest and other charges on top of the balance as well.
Can someone please verify this?
Posted on October 11, 2009 at 7:54 pm
According to the FDCPA, a debt collector is allowed to add interest on your account if:
- your original agreement with your creditor specifically states that interest charges will be added once collection activities commence, or
- if adding interest is lawful in your state. As far as I know, this fact is applicable in all states.
I believe this also applies whether a credit card charge off occurs or not.
Posted on October 12, 2009 at 2:28 am
What are the best payment arrangements for a credit card that has charged off?
Posted on October 19, 2009 at 3:35 am
debt settlement worked for me and it was very helpful
Posted on October 20, 2009 at 2:46 am
What are the best payment arrangements for a credit card charge off?
I agree with Andrea, debt settlement works best for charged off credit cards. Creditors are typically more forgiving in these cases, and as such, more willing to cooperate with debtors who've fallen behind on payments.
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