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Charge Offs - You May Not Have to Pay

Sep 10, 2008
Charge offs are detrimental to a good credit score. They occur when an account becomes delinquent for 6 months.

To delete charge offs from your credit history you have to dispute the charge off. You can do this by sending a credit repair letter to the credit bureaus.

In your credit repair letter tell them why the listing should be removed from your credit report. Common reasons are the: the account has been paid, information is wrong, or it's not your account.

The way our credit system works is you are guilty until you prove your innocence. What I mean is the incorrect information is true until you prove otherwise.

The Fair Credit Reporting Act was passed by congress in response to incorrect listings being reported. This piece of legislation states that any incorrect or unverifiable listing must be removed by the credit bureaus.

It is common for one charged off account to turn into numerous negative listings and a bad credit score. I will explain the process of what happens to an account once the lender reports it as a charge off.

The charged off debt will be sold to a collection agency by the lender. That collection agency will make efforts to recover payment. If they are unable to then the collection agency makes a new negative listing on your credit report.

Then the collection agency will turn around and sell your debt to another collection agency. This new collection agency will be able to report a negative listing if they are unsuccessful in collecting payment.

This process will continue through any number of collection agencies. It depends upon the size of the delinquent account. You can see how one account can ruin your credit score and turn into multiple negative listings.

If you get multiple negative listings your credit will be in bad shape. It will become extremely difficult to get approval for any new lines of credit.

I recommend disputing the charged off listing before you take steps to pay it. This is because just by paying the charge off does not mean it will remove all the negative listings.
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To learn more about how to remove charge offs or for a free credit repair letter to dispute negative listings visit us.
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