CHARGED OFF AND WRITTEN OFF — What you Need to Know About Credit Charge-Offs
A charge-off on your credit report can feel like a financial scarlet letter.
When an account goes unpaid long enough, creditors may “charge off” the debt as a loss—but that doesn’t mean you’re off the hook. For California consumers, understanding what a charge-off is, how it impacts your credit, and what options you have is critical to protecting your financial future.
What Is a Credit Charge-Off?
A credit charge-off occurs when a creditor writes off a delinquent account as uncollectible. Typically, this happens after months of missed payments. While the creditor removes the account from their books, you are still legally obligated to pay the debt.
In many cases, the original creditor sells the account to a third-party debt collector, who can take aggressive steps to collect the balance. Once a charge-off hits your credit report, it’s considered a major negative item and can stay on your record for seven years, heavily impacting your credit score since payment history makes up 35% of your FICO score.
Can You Remove a Charge-Off From Your Credit Report?
Removing a charge-off isn’t easy. Your options are limited to:
Waiting it out: Charge-offs naturally fall off your credit report after seven years.
Negotiating a Pay-for-Delete: This involves offering payment in exchange for removal. However, this strategy is risky unless you work with an experienced attorney to ensure the creditor honors the agreement in writing.
If the information is inaccurate, you can dispute the charge-off with the credit bureaus under the Fair Credit Reporting Act (FCRA). Erroneous entries must be corrected or deleted, which can restore your creditworthiness. Simply disputing accurate information won’t remove the account, but challenging errors can make a major difference.
Why Charge-Offs Are More Than Just Numbers
A charge-off affects more than your credit score. It can impact your ability to secure loans, housing, or even employment in industries that review credit histories. For Californians, state law provides additional protections alongside the FCRA to ensure your credit report is accurate and fair.
How R23 Law’s California Consumer Protection Attorneys Can Defend Your Credit
R23 Law’s California Consumer Protection Attorneys specialize in credit reporting disputes and debt collection violations. We use both federal and California consumer laws to:
Challenge inaccurate charge-offs
Negotiate with creditors and collectors under strict legal protections
Pursue damages when charge-off reporting violates your rights under the FCRA or California Consumer Credit Reporting Agencies Act (CCRAA)
Don’t Let a Charge-Off Define Your Financial Future
A charge-off can feel permanent, but you have rights under state and federal law. If a charge-off is damaging your credit or you suspect errors in your report, our attorneys are ready to act.
Contact R23 Law’s California Consumer Protection Attorneys today for a free consultation. We’ll fight to protect your credit and your future.
