Re: What exactly is charge off
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Posted by Taziblue
(64.157.146.125) on February 24, 2004 at 11:31:21:
In Reply to: What exactly is charge off posted by texcat on February 24, 2004 at 11:27:30:
A charge off is an accounting charge that is taken by the company after an account has been delinquent for 180 days. BY LAW, a company must make this charge against the books after 180 days. This means that the company has written off the debt as bad debt. It does not mean that they can no longer collect it. Many companies sell their charged off debt to debt collectors for a percentage of the value. The older the debt, the cheaper it is.
Just my view, but I would think past due means the original creditor still holds the debt and collections means that it has been placed with a collection agency.
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