As a consumer doing what you can to help keep your credit score high is important, as this will impact different areas of your life. If there is a charge-off impacting your credit report, understanding what it means and if there is any way to remove it is critical. Keep reading to learn more about these matters and why it’s in your best interest to connect with a California credit report lawyer who can guide you through these issues to help you protect your rights as a consumer.
What Is Charge-Off?
A charge-off is an account you’ve opened that has gone unpaid for so long the original creditor charges it off as a loss. However, just because this is considered a loss by the creditor does not mean you are no longer liable for the debt. You are still legally obligated to repay the funds you owe. In many instances, the creditor may sell the debt to a third-party debt collector who will then take necessary measures to receive the funds owed.
When a charge-off appears on your credit report, it is considered a negative and it will remain on your credit report for seven years. It can have a considerable impact on your score, as your payment history represents 35% of your total score.
Is There Any Way to Remove It?
When a negative account like a charge-off appears on your credit report, you may wonder what your legal options are. Unfortunately, you may be disappointed to discover that your legal options are limited. In general, the only two ways to remove a charge-off from your account is to either wait for it to fall off the report after 7 years, or consider a pay-to-delete. Pay-to-delete is an option that allows you to make a deal with the original creditor to pay off the owed debt in exchange for removing the information from your account. However, you should not pursue this option until you have spoken with an experienced attorney, as you’ll want to ensure a contract is in place to hold the company to its word that it will remove the charge.
However, if the information on your account is incorrect, you can dispute the inclusion of the charge-off on your report. Something must be wrong with the information, however, for the charge-off to be considered erroneous information. Simply disputing the accurate information will not result in the account being removed from your account.
As you can see, a charge-off can have a serious impact on different aspects of your life, which is why it’s imperative to connect with an experienced attorney during these matters. Our team understands how difficult these issues can be, which is why we’re ready to assist you. When you need help with incorrect information on your account, or team is here to help. Contact us today to learn more.
