In my last post regarding Charge-offs and Collections, I wrote about how a lot of consumers become confused when they pull their credit reports and find an overdue credit card account reporting twice. The same debt can’t be listed on your credit reports twice, right?
Wrong. In fact, most credit card accounts that have been charged off by the original creditor are not only reported as charge-offs, but they’re also reported as collections after they’re sold or transferred to a third-party collection agency. It’s a double whammy to your credit scores and a very frustrating situation to find yourself in.
So, can you actually remove a charge off from your credit reports? And what if you pay off the collection? Will the original charge-off then disappear? What happens to the paid collection itself?
I can’t tell you how many times I’ve seen these questions in our Credit Talk Forum. It frankly can b
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