Re: charge off

Posted by JKelly (151.197.123.138) on June 23, 2004 at 21:49:51:

In Reply to: charge off posted by MIGS on June 23, 2004 at 21:45:11:

It's an accounting term. It means that the original creditor has deemed your account uncollectable and taken the loss and the tax break for the amount they suppossedly lost. From Charge off it can be either assigned to a CA or sold to a CA. If it is assigned, CA gets a percentage of anything they collect. If sold, the original creditor does not get anything. These accounts are sold for pennies on the dollar, and the older the account gets, the less it is worth. It will be passed from CA to CA even beyond the SOL.

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