Credit Report Terminology

[noisefrazzle]

What is the name of your state? RI

Hey All:

On a credit report what is the difference in the terms "charge off" and "placed for collection" ? Do the phrases represent different stages of collection action? Also under the "collections" section, what do the terms "placed" and "verified" mean in regard to the dates listed next to the collections action?

Thanks!

NF

 

[TigerD]

What is the name of your state? RI

Hey All:

On a credit report what is the difference in the terms "charge off" and "placed for collection" ?

Charge off is an accounting term. A company may have charged off an account and not placed it with a collection agency.

Do the phrases represent different stages of collection action?

Not exactly. Some companies sell their debt at charge-off, others place with one to three collection agencies before selling. If the account is with a CA and you are wanting to take of it, contact the CA. If there is no CA listed on your credit reports, contact the orginal creditor.

Also under the "collections" section, what do the terms "placed" and "verified" mean in regard to the dates listed next to the collections action?

I'm not really sure what dates you are referencing and it makes a big difference in the answer. If you clarify this, you will get better answers and more of them.

DC