What is a charge-off?

A charge-off is an accounting term used to describe a debt that has become so delinquent that a creditor has given up on collecting the debt and removed it from their books. In simple terms, it means that the debt has been “charged off” or written off as a bad debt. Under California consumer debt defense law, a creditor cannot pursue legal action against a consumer for debts that have been charged off. This means that the debt will no longer be reported on the consumer’s credit report, and the consumer is no longer responsible for paying the debt. However, a debt that has been charged off is still legally enforceable. This means that the creditor, or even a collection agency, can still attempt to collect from the consumer. They may even pursue legal action in order to do so. Therefore, consumers should use caution when dealing with charged-off debts and work towards resolving them. It is important for consumers to know their rights when dealing with creditors and debt collectors. Understanding how consumer debt defense law works in California can help consumers protect themselves from debt-related harassment and other consumer rights violations.

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What is a charge-off?

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