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Is it possible to remove charge-off from your credit report?

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Carol
Author:
Carol
Community Contributor

A charge-off is when your creditor writes off the account as a loss. The creditor generally hands over the authority to collect this debt to a collection agency. This happens when you are over 180 days delinquent on your account. Many people think that once a debt is charged off, you are no longer required to pay the debt. However, this is not true. A charge-off doesn't mean that the debt is forgiven. You are still liable for the debt. The only difference is that now you will have to deal with a collection agency instead of the creditor.

How to remove charge-off from a credit report

When a debt is charged off, it gets listed on your credit report and will stay on your credit report for 7 years. This will negatively affect your credit score. Your future creditors and lenders will be able to see this and this can affect your ability to get new credit. So, it is better to try and remove the charge-off from your credit report. Even if you pay off the debt with the collection agency, the charge-off cannot be removed.

A charge-off can be removed only by the original creditor. The creditor is the one who reported the charge-off, and so it is he who can remove it once the debt gets paid. If you want to remove the charge-off on credit report, you will have to talk to the original creditor about the payments and request that he pulls back the account from the collection agency. However, this will depend on whether or not the account has been sold off. Also, not all creditors agree to pull back the account.

Once the creditor agrees to pull back the account you will have to let him know that you are willing to pay this debt. Then request that the creditor agree to a Pay for delete agreement (PFD) in addition to the payment. Get the payment and PFD agreement in writing. However, not all creditors agree to a PFD agreement. In that case, you will have to request him to report the account as "Paid". With time, the negative effect of the listing will decrease.

You can also try to remove the negative item by sending a Goodwill letter to the creditor once the debt has been paid off. A goodwill letter is where you request the creditor to remove the negatives as a goodwill gesture.

 

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