What is a charge-off?

A charge-off is a term used in the consumer debt defense law in South Carolina to refer to a debt that is no longer considered collectable by a creditor. When a charge-off occurs, the creditor removes the debt from the debtor’s credit score and reports the debt as a “charge-off” to the credit bureaus. This can have a negative impact to the debtor’s credit score. The process for a charge-off can vary by creditor but typically involves the creditor notifying the debtor in writing that the debt is past due and no longer collectable. The creditor will then take the debt off their own books, report it as a charge-off to the credit bureaus, and potentially pursue collection action against the debtor. If a charge-off occurs, it’s important for a consumer in South Carolina to understand their rights and the impact it can have on their credit score. The consumer debt defense law in South Carolina provides protection for consumers, including the right to dispute inaccurate information and the right to receive damages if the creditor has violated the law. Consumers should always seek legal help if a charge-off occurs and they are unsure of their rights.

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What is a charge-off?

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