What is a Charge-Off? When Lenders Deem Debt Uncollectable, Borrowers Are Still on the Hook
When businesses or lenders consider a debt uncollectible, usually due to missed or nonpayment, they can charge the account off. When they do, the debt is no longer on their books. The debtor still owes the money, though, and may have to pay a third-party collector which purchased the account. Here, I’ll cover everything you need to know about charge-offs, and how to avoid them. Navigate This Article: How They're Reported ... read more »
