Is their a time limit when creditors have to charge off an account? I was contacted by a creditor who indicated even though I had recently made a payment xxx amount was still past due and I needed to make a payment to keep the account from being charged off. I have not made a payment since 1999 but receive my monthly statements every month. Is this the norm? Why wouldn't they have charged this off by now? tml
It depends on the creditor's industry. Banks and financial institutions are controlled by regulations that tell them when a delinquent debt must be considered charged off. Mom & Pop stores have a lot more leeway. Keep in mind that a charge off is simply an accouting classification used by the creditor to convert an "asset" to a "liability" on their books. It does nothing as far as your liability or their right to collect it.
Thanks cable666 It's Household Bank...just thought they would have charged it off by now. Also I just received my first response to one of my validation letters....they indicate they are looking into it and will get back to me in 4-8 weeks. Is that the normal amount of time to validate? Many thanks, tml
Hmmmm... I'd bet they wrote it off on their books. But like I said, that is meaningless to you. If they are not reporting it to the CRA as a charge off, then good for you. So, what is the problem? Do you want them to report it as a charge off?
cable666 Thanks for the chuckle I needed that (lol) No....but a rep is calling me, she gave me the amt of the debt and the amt of the past due monthly payment......but when I asked her for information on the recent payment she said I made and her phone # she couldn't give me anymore info unless I gave her my SS# I refused to give her my SS# and she hung-up on me. Anyway I was just surprised that since I had not paid anything since 1999 that they were sending me monthly statements and have not charged it off. Thanks again for the much needed chuckle. tml
If you are trying to turn a new leaf and rehabilitate your credit, I would negotiate with them and make payments before the account is charged off. A few late payments are better than a charged off account. You might get lucky and get negatives removed in exchange for full payment. Doubtful, but get everything in writing. If on the other hand you are trying to weasel out of paying people, this is the wrong forum for that. Pay your bills!!!!!!!!! LOL
MikeB I have paid my bills for 30+ years, had a credit score to die for.......all now in the toilet.....don't worry I feel like a complete DEADBEAT AND AM NOT ONE BIT PROUD OF WHERE I FIND MY SELF TODAY. Have never been in this position before and am desperately trying to help myself, which is why I am watching this forum......Many thanks to you and all the rest, I may not find solutions here, but I at least have found that I am not alone. tml
Clarification I realize no one cares, but a charge off doesn't "exactly" turn an asset into a liability. The accounts receivable that contains your debt is an asset and when it is judged a bad debt, it is placed in a "contra-asset" account. Who cares, I know....
