Welcome to the Charge-Off Dispute Center

The Charge-Off Center offers professional help to remove Charge-Offs as well as do-it-yourself strategies to dispute Charge-Offs. Charge-Offs can be detrimental to a credit score, especially if they are recent.

“A single Charge-Off on your credit reports can keep you from being approved for credit.”

Professional Help

Thousands of consumers have been helped by Lexington Law to remove inaccurate, untimely, misleading or unverifiable (questionable) Charge-Offs from their credit reports. Over 461,721 such Charge-Offs were removed in 2013 alone. To find out what can be done about Charge-Off removal from your credit report:

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1-877-587-4574

Do-it-Yourself Methods

The majority of tough credit repair issues involve the dreaded Charge-Off. It may take several strategies to successfully remove a Charge-Off. While disputing with the credit bureaus may work for some Charge-Offs; tackling the original creditor may work with other Charge-Offs. Several articles have been written and many questions have been answered about Charge-Offs. The answer to your question more than likely exists in one of the below articles:

How to Dispute a Charge-off
A charge-off on a credit report is detrimental to credit scores, especially if it is recent. Learn how to dispute a charge-off and get it removed.

Should charge-offs be disputed or left alone to drop off your credit report
Disputing a charge-off has pros and cons and sometimes may be better left to drop off your credit report

Can an original creditor rescind a charge-off account?
Original creditors may agree to pull back an account from a collection agency under certain circumstances.

How to resolve an auto loan charge-off when repossession did not occur?
A bank can charge-off an auto loan without repossessing the car but it does not mean you now own the car.

Can a charge-off have a past-due amount?
How to dispute an inaccurate past due amount in a charge-off listing on your credit report.

Can charge-off accounts due to identity theft be removed?
Taking immediate action, like filing an affidavits with creditors and making police reports can help you avoid negative information being put on your credit reports due to identity theft.

Can a charge-off transferred to a debt collector still continue to accrue interest
A debt is open and can accrue interest until paid and a charge-off does not necessarily relieve debtors from further interest charges.

Auto loan charged-off after credit union was paid in full
A charged-off car loan indicates there was some deficiency balance the bank had to write off which means at some time they will pursue payment or turn the account over to a collection agency.

What to do when credit bureaus refuses to remove a charge-off
Disputing negative credit may take several strategies in order to get the desired result, get different strategies to dispute charge-offs.

Strategies to Dispute Chase Credit Card Charge-Off
Charge-offs can be detrimental to your credit reports, especially if they are current. There are several strategies to tackle charge-offs and one of them may be dealing with the original creditor to get it removed.

How to Repair Credit with Multiple Charge-Off Accounts and Build New Credit
Repairing credit, especially when charge-offs are involved may take several strategies such as debt validation or factual disputes. As credit is repaired building new credit is essential.

Can a Charge-off Remain on your Credit Report Past 7 years
A charge-off should be removed from your credit report after 7 years has passed even if a collection agency purchases the debt.

Can you dispute the charged-off mileage overage on a leased vehicle
The mileage overage on a leased vehicle may be charged-off, hurting your credit score, if left unpaid.

How can a 2nd mortgage charge-off be removed from credit reports
2nd mortgage charge-offs can be disputed but it may be better to settle for less or seek bankruptcy counseling.

How to get a charge-off removed from credit reports
One of the most detrimental credit items on your credit report is a charge-off so it is important to get a charge-off removed, if possible, in order to save your credit score.

Does divorce relieve you from financial responsibility of a co-signed debt?
Divorce does not necessarily relieve an ex-spouse of his or her financial obligations for a co-signed car loan and a charge-off could end up on your credit report due to a deficiency balance.

16 Comments

16 Comments

  1. Sin City Sinner

    February 23, 2016 at 11:27 am

    Hi,
    I could use some advice too. 🙂 I was defaulting on my car loan way back in ’05 and HSBC said they’d refinance my loan so that I’d have lower interest and a more affordable payment (it was $452. a month). They said I had to come current first, so I sent them every penny I had for rent, utilities, food, etc – in an effort to do the right thing… it turns out they lied to me, they don’t refinance car loans and out of disgust and principal, I decided they’d never see another cent from me again, regardless of my credit. Years later I saw my credit and it showed charged-off; now, after 7 years +, it’s no longer on my credit.

    I recently attempted to obtain a lien release, as instructed by the DMV and it turns out the loan was sold and now this company I’ve never heard of is telling me I have to pay – they’re trying to collect what the vehicle is worth on blue book value. After all the payments I made (nearly over 5 years) the loan should have been paid off, even they said that when I spoke with them about the refinance. I paid well over what the vehicle originally cost, it’s now barely worth $1,000. Any advice on how to settle this would be greatly appreciated. I offered $200.00 but the rep said her manager would never approve that… I told her it’s that or nothing. I haven’t heard back from them yet.

    Sincerely,
    Sin City Sinner

    • Lisa Phillips

      March 1, 2016 at 11:17 pm

      Disclaimer: I am not an attorney and strongly suggest you seek proper legal advice. In this situation it may be difficult to negotiate a settlement that low. The company you are dealing with sounds like they are now the lienholder. Even though the car is worth much less now, they have more leverage than you. One action you can take is to request an accounting of what has been paid and how the amount owed is being calculated. That way you can see any interest, late fees or other charges that might have been added to the balance.

      You have take into consideration also that the car can still be repossessed although not likely if they have not done so thus far.

      My suggestion: Get your offer in front of someone in charge who makes decisions directly. Sometimes sending a request directly to a manager or VP will get different results. If possible offer to meet them at half of the Bluebook value. Sometimes it’s worth the money to resolve a matter and just move on.

  2. exhausted

    August 27, 2015 at 4:00 pm

    I’m from Wyoming and entered into a 2nd mortgage with Beneficial in February 2007. I fell behind and went into a 20% settlement offer with them in July 2012 and made all payments for 12 months with the last payment made in July 2013. The debt was taken off of my credit report when it expired in 2014. However in May 2014, I received a letter from Beneficial stating my loan was transferred to a new company Green Tree. They are now seeking payment of the full original balance transferred from Beneficial and have added a lien to my property AND now added this debt back onto my credit report! I have sent a dispute letter to them and they state I missed a payment with Beneficial and are requiring me to send proof of all payments sent? HELP!

    • Lisa Phillips

      August 31, 2015 at 11:37 pm

      Because this seems to involve more than a simple “dispute” of charge-off, I can only suggest two options:

      (1) Make a complaints. The first should be with the Consumer Financial Protection Bureau at consumerfinance.gov. The second should be with your state’s Attorney General Office. The complaints should allege a practice of unfair and deceptive acts along with violations of the FCRA where Green Tree may have re-aged the account on your credit reports.

      (2) Seek legal advice. A lien on your property is very serious. A dispute with the credit bureaus would not remove a “lien” on your property. If you entered into a settlement agreement and that agreement was not breached in some way by you, then there should be no reason for Beneficial to have “transferred” your paid loan to another company. Something is not right. I am not an attorney but I suggest you get legal counsel asap. You may be able to find an attorney in your state at NACA.net. They are a group of consumer law attorneys who have represented consumers that have been victimized by fraudulent, abusive and predatory business practices.

  3. Ksmith

    July 29, 2015 at 9:53 am

    I sent my creditor a letter of verification of what they say I owe, and they sent me my statements. Is this sufficient ?

    • Lisa Phillips

      August 1, 2015 at 10:00 am

      Technically yes, statements can be verification you owe a debt. But the problem with statements as proof is they do not show if you had an issue with billing, amount owed, fraud or anything you may have disputed with the original creditor. The measurement of debt verification is low because the FDCPA does not clearly define what constitutes debt “verification.” However, if you were to sue or be sued by the collection agency you have the right to request full disclosure to prove you owe a debt. That does not apply to the debt verification process under the Fair Debt Collection Practices Act.

  4. Ksmith

    July 29, 2015 at 9:39 am

    Hello…I recently had a charge-off in the amount of $6,527.00 from Citi Bank in May(original balance $6000), I recently had some financial difficulties paying my monthly bill, however I did contact them explaining my situation, I asked what alternatives I had as I didn’t not want my account to close. I was giving payment amounts to my knowledge it was to avoid collections and closed account, only to find out they had already closed my account. I was very upset as I could of used my money towards another account. I then contact my bank and disputed the funds I paid, because I was deceived into making these payments when the account was closed without prior notice or warning. I was able to get my funds back, in which Citi then assessed fees for that. I received a letter from a collection agency trying to recoup the balance, however this agency is not reporting on my credit report. Citi is reported it as account closed, Charge-off, and it has a past balance of $1,255.00. Is this something I can dispute? If the account is closed can I have a past due balance? Under payment history for the months of May, June, July it says KD. What does this mean? Is there anything I can do? Thanks in advance.

    • Lisa Phillips

      July 31, 2015 at 9:05 pm

      Once the account is charged-off, Citi may still own the debt. If Citi still owns the debt they can report a past due balance. They may have simply contracted with a collection agency to attempt collection and not sold the account to a debt buyer.

      Even though you entered into a payment agreement, there may have been late payment and other fees continuing to accumulate. When you pay less than the full minimum due on an account, the creditor, at some point, can charge-off the account. Unfortunately, even though you may have been paying a delinquent account, Citi still reserves the right to close and charge-off accounts that are not being paid in full.

      KD means Key Derogatory. A key derogatory is an account that has a substantial negative impact on your FICO score. Accounts that have late payments can be reported as a “key derogatory.”

      Disputing an inaccurate derogatory item. Your credit report should contain only accurate and timely information. If there is something inaccurate about the Citi charge-off you should try to get it corrected immediately through the dispute process. But when you dispute request the trade-line be deleted, not corrected, because correct negative information is still negative. The credit bureaus are not required to delete but it does not hurt to ask for a deletion. If disputing directly with the credit bureau does not work you can take your dispute directly to Citi, they are under the same Fair Credit Reporting Act laws to investigate within 30 days or delete. If you do not get the desired results take your complaint to the Consumer Financial Protection Bureau, they have been helpful in resolving issues with the credit bureaus and credit card companies.

  5. Carl J

    June 16, 2015 at 11:35 am

    Lisa,

    I have an old Chase credit card account on my credit report that is now marked as “charge off” for $6500 (vs. a credit limit of $4800). I had to stop paying in Feb 2010. They continued to report through Oct 2013. I’m hopeful I can buy a house next summer. Is it worth it to contact the creditor to work out a payment in exchange for a removal of the item?

    Thanks,

    -CJ

    • Lisa Phillips

      June 17, 2015 at 12:40 am

      If the account is currently with a collection agency I’d say it would be worth attempting a pay for delete. However, it seems you are saying the charge-off is reporting but there are no collection efforts either from the original creditor or a collection agency. If this is the case I would leave it be for now.

      You stopped paying in 2010 it’s so old now it may not be worth the trouble of contacting Chase to pay it. Besides, a deletion is not guaranteed if you pay it. Any deletion would come solely from a goodwill gesture on Chase’s part. Even if Chase agreed to report the charge-off as “Paid or Closed” it’s still remains a negative entry.

      Having a record of a charge-off or collection doesn’t necessarily mean you won’t qualify for a home loan. Every mortgage lender varies and exceptions are made depending on the mortgage loan program you qualify for. Cross that bridge when you get ready to buy and take the advice of the mortgage lender. If you start shaking the cage now you never know what Chase will do. They may resume reporting the charge-off monthly, which they can legally do, and your credit scores will suffer.

      What you can do is start now to prepare for a mortgage loan by having at least 2-years of current on-time credit reporting, pay all obligations on time and have low credit card utilization (use 10% or less of your available credit) to get your file ready for a mortgage loan. Getting your credits scores up to a minimum of of 640 and saving up a down payment, closing costs and an emergency fund are essential components to being ready for a mortgage loan.

  6. Peter Mbamalu

    May 19, 2015 at 3:01 pm

    Hi, I had a charge off reported in 2009. However, it was reported again last year in 2015 by the company. I read that charge offs come off seven years after delinquency. Will it still come off the report in 2016 since it will be seven years from the time by then? The company reported it again this year, making it negatively impact my credit. Should I dispute it or will it come off in one year anyway whereas I should let it go. Please let me know. Thanks.

    • Lisa Phillips

      May 19, 2015 at 5:12 pm

      The original creditor can update the charge-off. What they cannot do is re-start the deletion date. Even if they update the charge-off monthly NOTHING should change the date it is due to come off your credit reports which is 7 years from the date the account first went delinquent and no other payments were made. Some creditors report a charge-off, then never update credit reports. Others update monthly or quarterly. When you dispute and it comes back verified the date of last activity is updated and it will cause your FICO score to temporarily decrease. They can legally update but again the date of first delinquency cannot be changed.

      • Peter Mbamalu

        June 1, 2015 at 9:31 am

        Thank you Lisa. Ok, so it was first reported 2009. So, 2016 will make it 7 years. So you are saying it won’t be a good idea to dispute it because it can decrease my FICO score correct? Therefore, I should just wait until next year until it is deleted off my credit report? Also, there was an attempt to sue me just last year but the I know the statute of limitations on a contract is 2 years to 3 years so I sent all this information to the courts and have not received apply. Please let me know. Thank you.

        • Lisa Phillips

          June 2, 2015 at 11:51 pm

          Yes, a verified dispute can temporarily decrease your FICO scores because the date of last activity will be updated. At this point, it is probably best to simply allow the charge-off to age off your reports. It’s older now and more than likely not doing much damage, if any, to your FICO scores. The statute of limitations on a written, oral and open-ended contracts differs from state to state. You should verify the accurate number of years. It’s best to follow-up with the court to determine the status of the case. In most debt collection lawsuits, the plaintiff is hoping you do not answer the lawsuit. But not following-up can be a mistake also.

  7. Richard Adams

    February 10, 2015 at 6:31 am

    I am desperate for help! I have been dealing with this matter for years and I have exhausted just about every measure I have even met with the President of the Credit Union. I have four accounts with this credit union, one consists of a 1st and 2nd mortgage, the next is two are auto loans, and the final is a credit card. Back in 2011 the credit union did a insurance audit, and any property they were the lienholder for, they force placed insurance on. At the time I was going through a divorce and things were in turmoil in every aspect. I could barely afford to keep the lights on let alone keep up with my other obligations. With that being said there were some late payments on my behalf. When they forced the insurance my driver’s license were suspended so I did not and could not have auto insurance so I paid their insurance as well as the house I did not have homeowner’s insurance so I paid what they forced. My mortgages combined were 458 once the insurances was placed it was just over 500 not too bad so I paid it, well a year of paying their insurance QUADRUPLED and my mortgage was almost 800 which I could not afford. They started the forclosure process but I was able to obtain insurance and catch up on the payments with my tax return, however they did NOT remove the overage I still had to pay the balance of the insurance they force placed and they did not refund the money like they said. Second was the cars the first a Nissan Maxima that I turned over to a relative to relieve myself of so many obligations he ended up having the car impounded in which I was able to get it back, however the bank was communicating with him in reference to the car and the loan so I had no knowledge the payments were late, so when I got the car back I called the bank and let them know what was going on and that I had the car in my possession and would be catching the payments up and selling the car. That very same night they came and repossessed the car and sold it within days, the car was a payment and a half behind, not even 60 days and they didn’t give me a chance to pay it and save my credit. I have a 2100 balance still today. The second car a Dodge Charger, they force placed insurance on took the payment from 271 to 373 I could not afford that and was tired of dealing with the bank so I went to CarMax to sell the car, they offered me 500 above what was owed on the car and the bank refused to take the money and repossessed that car as well. The credit card I was behind and over the limit but making minimum payments I got a letter in the mail one day that said the card had been canceled and they were not accepting anymore payments and I had to pay the balance in full. I am at fault for some of this regardless of my circumstances I understand I had obligations that I did not fulfill and assume responsibility for my role, however I feel as so they capitalized on my short coming and all I am seeking is justification. The President offered to cut all of the balances in half and he admitted that I was mistreated but said it’s too late to do anything with that now and the 50% settle was the best he could do. I want these items removed from my credit file, I will pay them in full if I have to but they should be removed and I need someone to help me with it. Honestly I don’t have the greatest feeling toward repair agencies I’ve tried many and they have never worked for me. I have spoken with Lexington Law and they seem to have a good system but they all did in the past and still did not work for me. Can you help me please?

    • Lisa Phillips

      February 11, 2015 at 9:04 pm

      I can only suggest you seek the advice of an attorney. NACA.net has a list of consumer law attorneys listed by State, some of which specialize in car repos. The issue I see with your situation is that the credit union treated you badly but they did not break any credit rules as far I can tell. When you finance a car you give the lender a security interest in the vehicle. Having a security interest generally means your lender can repossess the car without notice if you default on the loan. Many things can constitute a default but the most common reasons are not making timely loan payments or not having car insurance. Most lenders have in their contracts that they can repo a car even if the payment is only 1 day late.

      The reason I say to consult an attorney is that every state has its own rules regarding repossession. An attorney may find some loophole or mistake in the repo process. At this point you have no leverage to get the credit union to delete accurate information from your credit reports. You may not agree with how the credit union handled your accounts but they have not done anything that can considered inaccurate as far as I can see. When you have multiple accounts with a credit union they can close an account, even if payments are being made on-time, if other accounts have late payments. In fact, credit unions utilize something called cross-collateralization. Where when you take out a vehicle loan, you give the lender a security interest in the vehicle but that vehicle also serves as collateral for any other money borrowed from the credit union including credit cards and personal loans.

      Your situation is rather complex and an attorney looking over your agreements and correspondence may find something that can give you leverage to request deletion of negative information.

      As far as payment is concerned ask the president if he would be willing to delete the negative information in exchange for payment. There is no guarantee but creditors do on occasion make goodwill adjustments. You’ve already established a decent enough relationship with the president in order to get a 50% reduction! Use that relationship to ask for deletions. Put your request in writing. A goodwill letter should be sincere and explain what hardships you experienced that caused your financial difficulty. Mention in the goodwill letter that you are trying hard to rebuild your credit and it would help to have the negative items removed.

      If that does not work you can always dispute the negative items after you have paid them. Sometimes creditors or collection agencies do not respond to disputes once an account has been paid. You can also dispute charge-offs if there is inaccurate information in how it is reporting. I suggest you read how to dispute a charge-off to get some ideas.

      The best of luck to you.

      ~Lisa

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