A charge off means that the original creditor has sold the account to a third party collection agency.

Now what does this charge off mean? Does this mean that the creditor will not sue me? Will he sell the account to a third party collection agency in order to get a huge commission? But can the collection agency can sue me and get a judgement against me?

Again, how long do creditors wait before charging off accounts?

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Yes, when a creditor or lender changes off an account, it means that the creditor has given up hope of getting back that money and tries to at least recover some of the principal amount. That’s why often original lenders sell (charge off) old accounts for pennies on the dollar.

Hope this helps!! :)

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A charge off means that the original creditor has sold the account to a third party collection agency. This means that the actual creditor will not sue you but the collection agency will if you don't make the payments. Even, if the statute of limitations period has not expired, they hold the right to bring a judgment against you.

Usually, if a debt is 120 days past due, then the creditor may charge off the account.


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