Many people want to know if it is possible to remove a charge-off from their credit report. The answer is, it may be difficult, but it can be done.
Let\’s talk a bit about what a charge-off is and what happens if you let it go with attempting to correct it. When a creditor feels it will not be able to collect a debt from a borrower, it will very often write the debt off of its books. This normally takes place after many months of late or missed payments. The creditor will likely attempt to communicate with you through letters or phone calls during this time.
It is best at this point to attempt to negotiate a payment plan with the creditor to avoid the account going to collections. Do not ignore attempts by the creditor to contact you. Normally, creditors are willing to work with you if they see that you are trying to make an attempt at paying the debt.
It is important to understand that once your debt is written-off, your creditor may decide to pass or sell the debt to a collection agency. The collection agency will then attempt to collect the debt using any method of harassment and threat available to it, including the filing of a law suit to collect the debt.
Once reported to the credit reporting agencies, your charge-off can remain on your credit report for up to seven years. As you can imagine, your credit score will decrease substantially with a charge-off entry and your ability to obtain credit from any lender will be difficult to say the least. For this reason, you should try to remove charge-offs from your credit report.
To begin the process of removing a charge-off from your credit report, you need to request a copy of your credit report. Once you receive the credit report, check to see that all the information is accurate. If any entries on your credit report, including your charge-off, are false or inaccurate, you can attempt to have those entries removed. To do so, you will need to write the credit reporting agency and request the revision or deletion of the offending entry. Make sure to include copies of any substantiating documentation. The credit reporting bureau has 30 days to verify your claim. If it cannot obtain verification within 30 days, it must remove the false entry.
Alternately, you may contact the collection agency and try to come to an agreement. Since collection agencies purchase debt for cents on the dollar, you can try to arrange a reduced total amount due and make a lump sum payment. If you do not have money for a lump sum payment, you can try to arrange a monthly payment plan. Whatever agreement you come to with the collection agency, make sure that you receive in writing an agreement to erase the charge-off from your credit report or, at the very least, to have the charge-off status revised to \”paid.\”
In conclusion, if you are falling behind on your monthly payments, try to work out a payment plan with your creditor in order to avoid a charge-off. If a collection agency does end up with the debt, try to negotiate removal of the charge-off once the account is paid in full.
Midland Credit Management Ruined my Life. What I Did to Get Revenge. www.MidlandCreditDebt.com
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