Charge Off

Submitted by fujiapple19 on Tue, 05/19/2009 - 22:49

I was surprised to receive a notice on a car that was returned to the creditor (Drive Financial). It shows up as a Charge Off on my credit report. Do I still owe them money - the charge off took place in 2003.


Hi fujiapple19,

If it is showed as charge off then surely you do not owe any money to the creditor as they have got their vehicle.

But make sure that you have good documentation in order to revert back to the notice sent by those people.

It won't hamper your credit score further.

:arrow: :arrow: :arrow:

keep us informed.

Wed, 05/20/2009 - 03:07 Permalink

Hi fujiapple,

Did you check your credit report before you paid the auto loan? It might be that the debt account was already charged-off, before you made the payment. Charge-off stays on your credit report for 7 years from the day you became delinquent, even if you have already paid. Did you make payments directly to Drive Financial or to any collection agency? I think you should call Drive Financial and request them to at least list the debt account as "Paid Charge-Off".

And if you have made the loan payment on time, and charge-off is wrongly listed on your credit report, dispute it with the credit bureaus. Please find in the following link a sample of a dispute letter: . You should also enclose copies of documents, in proof of the payment dates.

Wed, 05/20/2009 - 04:24 Permalink

Accounts receivable that will likely remain uncollectable and will be written off. Charge offs appear as an expense on the company's income statement, thus reducing net income. In general, companies make an estimate of charge off expenses that might be incurred in the current time period based on past records as part of the process of estimating earnings. Most companies make a charge off allowance since it is unlikely that all of their creditors will pay them in full. also called bad debt.& I also think you should call Drive Financial and request them to at least list the debt account as "Paid Charge-Off".

Fri, 05/22/2009 - 07:51 Permalink
JO BOW (not verified)

If I never got a bill showing my payments, can I get a charge off letter after 6 months? and can my home go into foreclosure?

Tue, 09/15/2009 - 02:52 Permalink