charge off?

[vietnamvet]

What is the name of your state? florida

can someone explain exactly what it means to have an account charged off? i was told that this account was charged off and the original company no longer has anything to do with it. it now refers me to a different company which is a collection agency, and whats to set up payment arrangements. once an account is charged off, isn't it written off by the original company? also, what is the statute of limitations in florida concerning this debt?

thank you for your help.

 

[Ladynred]

Charge-off is an accounting term that means the company has written off the debt as uncollectable, reported it to their board and to the IRS as a bad debt. It does not mean that the debt is 'cancelled' or invalid in any way. They usually then sell these accounts to collection agencies.

The SOL for suing for debts in FL is 4 years.

If the last time you paid the original creditor was more than 4 years ago, then the SOL has expired and you could send the CA a cease and desist letter.

Do you have your credit reports showing the charge-off ?
The start of the SOL period would be approximately 180 days BEFORE the charge-off date.