Charge-Off
An accounting status creditors apply to delinquent accounts (typically 180+ days late). The debt is still owed.
A charge-off is the accounting designation a creditor applies to an account that's been delinquent for typically 180+ days. The creditor "charges off" the debt — writes it off as a loss for tax purposes — but the consumer still owes the underlying balance. The charge-off appears on the credit report as one of the most damaging single negative items, dropping scores 50–150 points.
Charge-offs stay on credit reports for 7 years from the DOFD under FCRA §605(a). Paying a charge-off doesn't remove it; the status simply changes to "paid charge-off," which is still adverse. Removal requires a successful FCRA dispute.
Charge-offs frequently have disputable angles: balance errors after partial payments, sold-debt documentation gaps, re-aged DOFDs, missing furnisher records. Each disputable angle uses different FCRA scaffolding.
Also called
Related terms
FCRA §611(a)(1) requires bureaus to investigate disputed items within 30 days. The bedrock dispute provision.
Date of First Delinquency — the date a consumer first became delinquent on an account that eventually went to charge-off or collection.
A debt that has been turned over to a collection agency, typically appearing as a separate account on credit reports.
Resetting the date of first delinquency on a credit report — illegal under FCRA §605(a).
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