0
What does it mean when a collection company is reporting a charge-off?
Wiki User
∙ 19y ago
Charge off is an accounting term. It has been paraphrased from "charged off to profit and loss" and applies to bad debts. At the end of the year, or at certain times of the year, companies will write unpaid debts off so they are not showing red ink on their books for tax and accounting purposes. If the consumer has not paid the debt, any deficiency balance is still owed in full. For the consumer's purposes charged off is the same as a collection account. It is significant derogatory item and has a large impact on credit scores.
Wiki User
∙ 19y ago
Add your answer:
Earn +20 pts
What does selling debt mean?
A company, usually a collection agency, will buy past due accounts from businesses for pennies on the dollar. They make a profit when they collect on the debts.
What does the term company mean?
what does the term company mean in insurance
Can a collection agency seize you assets?
No. A collection agency can apply for a court order to recover a debt which may mean seizing assets.
How many years dose a dept last?
If you mean debt on your credit report the answer is about seven years from the date the creditor stops reporting it. If it's bad debt, the creditor may report for at least five years actively. Then you have seven years from THAT date until it falls off your file. Realize this: some companies sell of bad debt to third party collection agencies which prolongs the amount of time it will show on your credit file. For example: Capital One issues you a credit card. You charge it and never pay. They report you as a P&L (profit and loss writeoff). They enter that on your file. After a year they sell it off to Company A at 60 cents on the dollar. Company A then attempts to collect the debt. The enter a tradeline on your credit file. Now you have two. Meanwhile, Capital One is still reporting. If Company A cannot collect the debt they too show as a P&L. They sell the account to a clearninghouse at 30 cents on the dollar. The clearinghouse now enters a tradeline on your credit file. Now you have three. Meanwhile as the clearninghouse tries to collect the debt you have three tradelines all reporting derogatory on your credit file. Moral of the story - pay your bills.
What do you mean by llc company?
dear sir,
What does 'chargeoff' mean?
It is a term used by credit card companies to indicate they are ending attempts to collect the debt. Then they list it as a bad debt tax loss. This does not mean the account holder is "off the hook". More than likely the account will be bought for pennies on the dollar by a third party collector. The REAL collection process will start, which may, if the debt is not satisfied, culminate in a lawsuit.
What does Dun and Bradstreet mean?
Dun & Bradstreet is a business credit reporting company.
Who has the biggest video game collection in America?
If by collection you mean which company has the biggest catalog i would have to say EA.
What does loglogic mean normally?
LogLogic is not a term but instead the name of a company. They are a technology company that specializes in Security Management, Compliance Reporting, and IT Operations products.
How and when does a collection account become a chargeoff?
When the lender decides to classify it that way. Some will automatically charge it off when it is 90 days delinquent, others will never. Charging off a debt is just an accounting entry that keeps the bank from overstating their income and assets. It does not mean the debt is no longer owed or that they will stop trying to collect it.
What does the code spr09e mean on Prada sunglasses?
if you want to know the answer, call the company. Its the spring collection 2009.
I have a cup that has britannia metal co 2058 on the bottom what do they mean?
co is for company. the 2058 is the model/collection number.
What does Q1 2010 mean the US?
the first quarter - Jan to March - in 2010. The first accounting or reporting period of a company's results eg sales revenues.
If a civil court judgment for collection is on your credit report and you have written documentation that debt was dismissed does that mean that the item can be removed from your credit file?
Yes, you must send the judgment to all three credit reporting agencies, Trans Union, Experian, and Equifax. You can get there addresses of line by searching "credit reporting agencies".
Do financial reporting and financial statement mean the same thing?
"Do the term financial reporting and financial statement mean the same thing?"
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 reporting entity mean?
an entity with reports
