Sample content — final article coming soon.
A charge-off is when a creditor writes off an unpaid debt as a loss on its books. A collection account means the debt has been passed to, or sold to, a collection agency. In both cases the debt may still be owed.
How they appear on a credit report
Charge-offs and collection accounts are usually reported as negative information. They can remain on a report for a period set by law, even after they are paid.
Questions to consider before acting
- Is the debt yours, and is the amount correct?
- Which company currently owns or is collecting the debt?
- Was the debt included in a bankruptcy?
- Can you get any agreement in writing?
Federal law gives consumers certain rights when dealing with debt collectors, including the right to request information about the debt.
Getting more information
The Consumer Financial Protection Bureau and the Federal Trade Commission publish plain-language guides on debt collection and your rights. If your situation is complex, consider speaking with a qualified professional.
Sources
- AnnualCreditReport.com: official source for free credit reports
- Consumer Financial Protection Bureau: credit reports, scores and consumer rights
- Federal Trade Commission: free credit reports and disputing errors
This article is general educational information, not individualized legal, tax or financial advice.
