Charge-Offs
Voluntary Repossession can end up on your credit reports
When you enter into a voluntary car repossession agreement with your lender, your credit score and report will reflect that information.
Re-aging a credit account on credit reports is illegal
Re-aging of a debt essentially turns back the clock on when a debt is scheduled to drop off your credit reports.
What is the FCRA Compliance Date
The FRCA Compliance Date determines how long a negative account remains on credit reports by calculating the original delinquency date.
7 Essential Facts about Charge-Off Accounts
Charge-off accounts may be sold to a collection agency causing both negative accounts to appear on your credit reports. Paid charge-offs may not get it removed unless the lender agrees to delete.
Paying less than the minimum credit card payment can lead to a charge-off
Paying less than the minimum payment on credit cards can lead to a charge-off unless you enroll in a credit card hardship program. But getting your credit card company to admit they have one can be a challenge.
Remove accounts that are past the credit reporting time period
Original creditor is no longer reporting an account to the credit bureaus but debt collector is reporting new dates on the account. This action is re-aging an account which is illegal.
Remove date of charge-offs doesn’t change and cannot be extended
Creditors can choose when to report a charge-off but the remove date of a charge-off doesn’t change, it’s 7.5 years from the last payment.
Double Whammy of a Charge-Off and a Collection Account Reporting
When you’re struggling with debt, you may want to zone out…Don’t do it! Unpaid debt just doesn’t disappear. Not dealing with debt can turn into a charge-off and collection account which can be a double whammy on your credit reports.
Charged-off account does not mean the debt is no longer owed
Creditors may write-off seriously delinquent accounts in the form of a charge-off but that does not mean you are free and clear from paying the debt.
