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If you owe a credit card company and your credit report says that the account is charged off do you still have to pay the debt?
Wiki User
∙ 8y ago
Sorry to disagree with the previous poster. You do indeed still have to pay. A charge off is a term used by the original creditor to indicate the debt is being removed from their books. That is done for tax purposes, so it can be claimed as a loss. The account will be sold to a third party who will then pursue payment in full collection. If an agreement cannot be reached, the collection agency may resort to legal remedies, in other words a lawsuit.
It also depends on the age of the "last activity" on the credit card. Each state has a statute of limitations on collections, anywhere from 4-7 years. If the statute has expired since your last activity, the amount is no longer collectible by the company, tho it will remain on your CR for 7 years. Word of warning: If you want to pay it off, get a letter from the creditor first stating that they will remove the trade line "charged off". If they don't, your payment is new activity, and the negative credit, tho reflecting "paid", will remain for an additional 7 years.
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I agree with the prior answer noting the 4 & 7 year statutes I work in the pre-legal department of a collection agency.From the last activity it will remain on the report for 7 years ,so if it was here for 6 years and you decided to make a payment your 7 years of credit reporting starts all over again.There is a 4 year statute of limitations for suit, after 4 years from last activity a creditor can call you all day long but they can use no other means ie a law suit for judgments for a wage garnishments or property leins to recover the debt.
Wiki User
∙ 8y ago
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If an account was charged off and removed from your credit report after 7 years can another company buy the account and place it back on your credit report?
No, it is illegal, and if you are a victim of this, you can have it removed from your credit report by disputing it with the bureaus. After the statute of limitations is up on any trade line, it can not be placed back on your credit report.
If you settled a charged off account with a collections agency for less than the full amount can they resell the difference to another agency?
Yes unfortunately they can. Companies today want the charged off account money and will sell it to another agency in order to get this. It will show up on your credit report under another company...so you have 2 listings on your credit report for the original account.
How can you make the credit card company reopen an account and remove 'closed by credit grantor' from your credit report?
You can't MAKE a credit card company reopen an account. You can call the credit bureau and request that they change the status to indicate that is was closed by you and not the credit grantor. Or, you can simply put a notation in your credit report stating that the account was closed by you and not the card company.
Can a a credit company file the same account twice on your credit report?
It happens and can be disputed. Call you credit card company or credit agencies.
Do I legally owe the company that purchased my charged off account from the original lender who has closed the account and it no longer appears on my credit report?
Yes. Your signature for the first debt obligation transfers to the second when it was assumed by the second creditor. It may not be on your credit report because you may not be late. Their policies may also be different than the first. But you will eventually be reported to whatever credit agency(agencies) they report to.
If an account was charged off and removed from your credit report after 7 years can another company buy the account and place it back on your credit report?
No, it is illegal, and if you are a victim of this, you can have it removed from your credit report by disputing it with the bureaus. After the statute of limitations is up on any trade line, it can not be placed back on your credit report.
How does a company get your bank account information?
Credit report?
If you settled a charged off account with a collections agency for less than the full amount can they resell the difference to another agency?
Yes unfortunately they can. Companies today want the charged off account money and will sell it to another agency in order to get this. It will show up on your credit report under another company...so you have 2 listings on your credit report for the original account.
How can you make the credit card company reopen an account and remove 'closed by credit grantor' from your credit report?
You can't MAKE a credit card company reopen an account. You can call the credit bureau and request that they change the status to indicate that is was closed by you and not the credit grantor. Or, you can simply put a notation in your credit report stating that the account was closed by you and not the card company.
Can a a credit company file the same account twice on your credit report?
It happens and can be disputed. Call you credit card company or credit agencies.
What does 09P mean on credit report under rating?
This is the rating of your account. A R09 basically means that it is a charged off account.
How does a vehicle repossession affect your credit if everything else in your credit report is good?
Absolutely. Repossession, whether voluntary or involuntary, show on your credit report as a charged off account. This designation is similar to a collection account and shows that you did not repay the vehicle loan. Such a listing in your credit report would have a significant negative impact.
Do I legally owe the company that purchased my charged off account from the original lender who has closed the account and it no longer appears on my credit report?
Yes. Your signature for the first debt obligation transfers to the second when it was assumed by the second creditor. It may not be on your credit report because you may not be late. Their policies may also be different than the first. But you will eventually be reported to whatever credit agency(agencies) they report to.
What does it mean when your credit report states that you have a paid closed collection account on you credit report?
The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.
What does it mean when an unpaid account is closed on your credit report?
that it has been closed by either you or the company- either way it shows as a negative in your report
Can a credit card company report a 30 day late on a closed account that still has a balance?
If a credit card is closed it cannot have a balance. Just because you have stopped using the ard you cannot declare the account closed. If you owe even one penny, the account is open and the credit card company can 'report a 30 day late'
Can a negative balance of a checking account that was later charged off in a house at a credit union be reported on a credit report?
Yes. You violated the terms of the financial agreement and as such are demonstrating your irresponsibility as a credit risk. That is the purpose of credit reports to a credit bureau. It exists to report your history as a credit-worthy individual.
