What does P and L mean?

Answer 1

P&L is an industry abbreviation for profit and loss, as in "charged off to profit and loss". For the purposes of a consumer reading their credit report; it is the same as a collection, charge off, or write off.

Many credit granting companies have their own collection and charge off departments. Once a debt is no longer being paid as agreed by a consumer, most companies will attempt some form of collection. At a certain point, not willing to keep bad debts on their books, they simply "write off" or "charge off" the bad debt on their profit and loss figures. They have written the debt off, so it may even show as a zero balance on your credit report. However, the consumer is still responsible for any deficiency balance owing on a P&L account.