Credit

As per to FDCPA, an account can be charged off by the creditor if you're about 180 days behind your payment. And an account in collection will fall off your credit report after 7.5 years.

Nothing in the FDCPA about when an account charges off Paul. Go reread it....

Charge off is an accounting principle and is a function of GAAP not the FDCPA.

Creditors can charge off non performing accounts well before 180 days at their discretion.
Charge offs are reported as an aggregate hit against quarterly loss reserves and become public information for most banks.
Most wait to take this reporting action until the allowable limit because it is bad news that affects their bottom line and is scrutinized as part of their overall performance by wall street and bank share holders.

A bit more to it than that, especially as it pertains to credit reporting and collection cycle, but that's the basic concept.


Mileage may vary