"charge Off" What Does It Mean?

[bobo60]

What is the name of your state? NC

hello,

i have IDTHEFTSMART monitoring my credit report for activity. i recently received two alerts that two accounts that are in collection agencies hands have been 'charged off". the accounts are about 3-4 yrs old. does this mean that the collectors are no longer pursuing these accounts? do they conicider them paid off? am i still in debt to these collectors, and how will it affect my credit score? thank you all for any advice!...bob

 

[justalayman]

all "charged off" means is the creditor has taken it as a loss on his tax filings. Nothing more.

the debt is still as valid as it ever was.

 

[TBeach]

www.stretcher.com/stories/03/03aug25c.cfm
Found your answer here.

 

[StephenH]

A charge off means the original creditor decided that the debt is a loss to them. It does not mean you don't owe the money. You need to pay it, or the debtor may very well send it to a collection agency.

 

[bobo60]

hello,

thanks for the info. i didnt expect the debt to just go away! i was really more concerned about wether it would change my credit srore at all. i beleive it is already in the hands of a collection angency. i intend to pay it off. i have been in and out of hospitals for illnesses for several years, so, when i get the money, they will get the money...bob

 

[justalayman]

yes Bob, it can still be placed on your credit report. That does not change. It may be placed by the collection agency that is hired to collect it or whomever purchases it if it is sold or the original creditor.