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Charge Off

Discussion in 'Credit Talk' started by Illini, Mar 2, 2002.

  1. Mar 2, 2002 #1
    Illini

    Illini Well-Known Member

    I may be an idiot, which of coarse I know I am, but what in the hell is a charge off? I read this board daily and it comes up often, but I am not sure what it is.

    Thanks,
     
  3. Mar 2, 2002 #2
    ng

    ng Well-Known Member

    Bad debt
    Tax write off

    From a company stand point
     
  4. Mar 2, 2002 #3
    Illini

    Illini Well-Known Member

    How does this work though? A person just does not pay on the credit card and the company says forget it?
     
  5. Mar 2, 2002 #4
    ng

    ng Well-Known Member

    It is usually sold to collections
     
  6. Mar 2, 2002 #5
    lbrown59

    lbrown59 Well-Known Member

    The Co. might forget it but you won't.
    The CA's will see to that.
     
  7. Mar 2, 2002 #6
    keepmine

    keepmine Well-Known Member

    Chargeoff is an accounting term. It means that a creditor is informing regulators and shareholders that they think there is no chance in collecting this debt. Financial institutions are required to chargeoff bad debt at 180 days after last payment.
     
  8. Mar 2, 2002 #7
    Illini

    Illini Well-Known Member

    Thanks for the info, feel more informed. Thank God, none of these on reports.
     

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