When creditors are not successful to collect the owed money after a number of attempts then they would consider that specific account as a loss or charged off account.
At this point of time, creditors discontinue contacting you for the collections.
You might think that creditor will not contact you again in future for recovering the owed amounts, as creditor has stopped contacting you.
If you consider it this way, you are entirely misjudging the whole scenario because creditors often sell charge-off accounts to collection agencies, even after the declaration of charged-off accounts.
Collection agencies use their own ways to recover the credits where creditors have been failed in the past to collect from consumers.
The first object you need to check is the statute of limitations (SOL) for your state.
If you find statute of limitations (SOL) period has expired then collection agency do not have any rights to sue you for collection of charged-off debts.
If charged-off account is more than seven years old then according to the regulations of Fair Credit Reporting Act, credit bureaus will remove charged-off account from your credit report.
After this period, collection agency cannot enter the information again.
If you find credit bureaus have not erased the charged-off accounts, even seven years period has passed, send them a request to remove it immediately.
In case, collection agency contacts you for collections at this moment of time you have the right to take legal action against them.
A number of people think that paying collection agencies would aid in the elimination of charged-off accounts.
However, it is completely incorrect, because if you begin paying them again, it will not be of any assist in the removal - instead it would renew the debt.
You can allow it go for some years to get to the end where debts would expire but in the situations where you find it tough to sit and wait for years then you might hire any credit repair agency for your assistance in solving your problems.
At this point of time, creditors discontinue contacting you for the collections.
You might think that creditor will not contact you again in future for recovering the owed amounts, as creditor has stopped contacting you.
If you consider it this way, you are entirely misjudging the whole scenario because creditors often sell charge-off accounts to collection agencies, even after the declaration of charged-off accounts.
Collection agencies use their own ways to recover the credits where creditors have been failed in the past to collect from consumers.
The first object you need to check is the statute of limitations (SOL) for your state.
If you find statute of limitations (SOL) period has expired then collection agency do not have any rights to sue you for collection of charged-off debts.
If charged-off account is more than seven years old then according to the regulations of Fair Credit Reporting Act, credit bureaus will remove charged-off account from your credit report.
After this period, collection agency cannot enter the information again.
If you find credit bureaus have not erased the charged-off accounts, even seven years period has passed, send them a request to remove it immediately.
In case, collection agency contacts you for collections at this moment of time you have the right to take legal action against them.
A number of people think that paying collection agencies would aid in the elimination of charged-off accounts.
However, it is completely incorrect, because if you begin paying them again, it will not be of any assist in the removal - instead it would renew the debt.
You can allow it go for some years to get to the end where debts would expire but in the situations where you find it tough to sit and wait for years then you might hire any credit repair agency for your assistance in solving your problems.
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