charge off

This happened to me with one of my loans. This means that the company has decided to acknowledge you will never pay them back the loan. However, they can still sell the debt to a collections agent and THEY can still try to get it from you.

Depending on the validity of the lender, a charge-off can put you into the Chexsystem for up to 7 years, meaning it can be hard to get a loan or open a new bank account.

An expert here can probably give a more thorough answer, but that's the jist of it I think.

Charge off is an accounting term meaning they transfer your debt from their good books to the bad books.

PDL's do NOT report to Chexsystems.

Actually, legal storefront lenders (in Ohio) do report to Telecheck and/or ChexSystems.

The charge off was from advancemetoday. Although I'm not too worried because the State of California had sent them a Cease & Desist letter a few months before I obtained my loan.

You may get calls/letters from collectors. Just respond with validation requests. They cannot validate an illegal loan.

So if and when these letters/calls start I just tell the representative that I need a validation letter emailed or mailed out to me? What if they give me a hard time and say you took out the loan you have to pay the money back?

No.

If you receive calls, you tell them you want a dunning letter or letter of collection sent (i.e. then need to send you something in writing). If they refuse, ignore them and/or send them a cease and desist letter.

If they actually send you something in writing, respond with a request for validation letter, sent CMRRR.

Ohiogal
thank you for all the useful information. I will defenitly ask for that if and when I answer their calls. I just got a message AGAIN, the guy keeps on saying I came to an agreement of somesort. I wasn't even aware........