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Law Office of Randall A. Fischer P.A. At Stuart

2100 SE Ocean Blvd #203, Stuart,
Martin, Florida 34996
Phone: (772) 463-7737


Randall A. Fischer, P.A.

725 SE Port St Lucie Blvd #206, Port St. Lucie
St. Lucie, Florida 34984-5232
Phone: (772) 463-7738


Randall A. Fischer, P.A. Law Office At Jupiter

1080 East Indiantown Road #104
Jupiter, Florida 33477
Phone: (561) 316-7111


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What does a Charge off mean on a credit Report?

What does a Charge off mean on a credit Report?

Clients have come in with their credit report in hand wondering why they are receiving collection letters from a collection agency or a law firm requesting payment for a debt that has been charged-off on their credit report.  “How can they charge me for a debt that has been charged-off?”  “I thought a charge-off meant I was no longer responsible to pay this bill!”  It is even worse when a client comes in with a summons and complaint for a debt they believed they were no longer obligated to pay because it was showing as “Charged-off” on their credit report.

What does a charge off mean on a credit report?  It is an internal accounting method used by the creditor to indicate a change in the status of the obligation on their ledger.  It does not waive the obligation to pay.  Often the debts, if assignable, are sold for less than what is owed.  The third party assignee will then continue to collect or file an action to collect the debt.

Misinformation can lead to problems down the road.  Get the facts.  If you do not know what something means do not rely on what you may have heard somewhere, ask a professional or conduct your own research.  I am a lawyer in Port St. Lucie, Stuart, and Jupiter FL.  I have had cases throughout south Florida dealing with a wide array of financial issues for businesses and individuals.  If you find yourself in a precarious financial position and need help, please give me a call.

 

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