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Charge off is what the one you owed did. Took the loss on their records. They may sell the right to it to someone else who may try and collect, who also may do the same thing, and they may also sell it to another, etc. Each party Charges Off the amount they believe they will never collect. CHARGING OFF IS NOT FORGIVING....YOU OWE THE DEBT....THE LENDER/OWNER OF THE RIGHT TO COLLECT IT SIMPLY IS ACCOUNTING FOR THE LOSS. See discussion, pasted below, which was originally for a slightly different Q: A charge off (or write off) is the accounting process where a business acknowledges a receivable (an asset) it believes is uncollectable effectively does not exist. It is taking the cost of not collecting that receivable as a charge against current earnings. Hence the companies net current earnings is lower than they would have been and subsequently, the amount of income taxes they pay is also lower. IMPORTANT: It does not mean the debt is forgiven, just that they can

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โˆ™ 2006-04-05 22:33:38
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Q: Why do some collection agencies get a charge off account and start it like a new account?
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