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charge off

Date: Wed, 06/08/2011 - 18:47

Submitted by anonymous
on Wed, 06/08/2011 - 18:47

Posts: 202330 Credits: [Donate]

Total Replies: 2


Could someone please tell me what a charge off on your credit report means and can a CA try to collect on it? It's for a car loan that I voluntarily had them repo, as I was tired of getting harrassing calls from the bank one day after the payment was due, even tho in the contract it states I had a 10 day grace period before it would be consider late.


You do realize that you probably owe a deficiency balance now...and those "late" calls will now seem like a walk in the park.

Charge off is an accounting term...transfered from the "good" books to the "bad" debt books. The debt is very collectable. Now you will have to deal with collectors and attorneys demanding the deficiency balance in full.


lrhall41

Submitted by SOAPLADY on Wed, 06/08/2011 - 19:52

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When you are unable to make payments on a debt for around 180 days or so, then the creditors usually charge off the account. Creditor declares that he has been unable to collect on the debt. He will report this account as loss when he will file income tax return.The creditors usually assign the account to a collection agency. So, creditors/collection agency can try to collect the debt. If the debt has not been fully satisfied after the repossession of the car, then you're still legally liable to pay the deficit balance.


lrhall41

Submitted by Good Nelly on Wed, 06/08/2011 - 20:34

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