What Does It Mean When a Debt Is Written Off
A written off debt, sometimes called a charge off, occurs when a creditor concludes the account is unlikely to be collected and removes it from active books. The debt still exists and may be sold to a collection agency.
How a Charge Off Affects Credit
Charge offs are negative items on credit reports and can lower scores significantly. They remain on reports for up to seven years from the first missed payment that led to the default.
What Consumers Should Know
Consumers can dispute inaccurate charge offs and negotiate pay for delete agreements. Checking credit reports regularly helps identify errors and track the status of delinquent accounts.
