Charge-offs may still be collectible

Maintaining good credit could be challenging, particularly after a life-altering event like job loss. Even if a creditor charges off one of your accounts as bad debt, that doesn’t mean you’re safe. It is quite possible that you will still be liable for that bad debt – even after it disappears from your credit score.

Good part to charge off

There are several credit history charge-off scenarios. Consider this one. Bankrate states that there are different rules for collecting financial debt and reporting financial debt which means it might be off your credit rating but might nevertheless belong to you. Collection rules come from the Fair Debt Collection Practices Act (FDCPA) while the charge-off rules are under the Fair Credit Reporting Act- (FCRA).

After seven years, any charge off has to come off a credit history in accordance with the FCRA. This does not contain just the reporting agencies. The agency that owns the debt is also involved. You can look at your credit score pretty easily. Just do it a month after the charge-off was supposed to happen. Dispute the bad debt with Equifax, Experian and TransUnion if it’s nevertheless there.

Student loans, tax liens and Chapter 7 bankruptcies cannot be charged off.

Issue with charge-off

Bad debt will not stay on your credit report forever with FCRA rules. Unfortunately, the FDCPA makes it possible for financial debt collectors to pursue your financial debt almost in perpetuity. There is a lot of concern for one who needs debt repair even though bad debt is purchased in a market. Before selling a charge off, agencies tend to make an effort to collect from you at least once.

Applying for charge card financial debt has become more common. This is because joblessness has kept individuals from spending money. A consumer can get away from the credit cards though because of a statue of limitations. The state and court system will determine how long this time period is although it’s usually 6 to 10 years for installment loans, auto loans and payday advances and 4 to 6 years for credit cards. Your state's attorney general can be accessed. This is where you should go for more information.

Know your debt collection rights

Nobody can contact you about debt anymore if it has been charged off past the statue of limitations for your state. If a debt collector continues to chase, you may have the option to levy a counter-suit.

Legal action will require time, money and the advice of a lawyer, however. The best way to get out from under a financial debt collector that is pursuing your debt in a legal fashion is to either pay what you owe in full or come to a settlement.

Articles cited

Bank Rate

bankrate.com/finance/debt/debt-dropped-from-credit-report-still-owed.aspx

Equifax

ai.equifax.com/CreditInvestigation/

Experian

experian.com/consumer/cac/InvalidateSession.do?code=DISPUTE

Trans Union

annualcreditreport.transunion.com/entry/disputeonline

How to deal with collections

youtube.com/watch?v=9SVFdH0Ayco