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I hope I am posting this in the right section, but I really need help. I received an alert from Experian telling me that one of my accounts was just listed as a charge-off on 7/12. I have been paying this account through a credit reduction agency. Does this mean that this creditor sold my account and that is why it is charged-off? Was I scammed by the credit counselor?

CO is an accounting term only which indicates the OC charged it against income. It does not necessarily indicate that the account has been sold but generally that the account has remained past due for 180+ days and GAAP (Generally Accepted Accouting Principles) indicate that the account should be charged off. I would contact your credit counselor and get an accounting on what money has been applied to this debt and then contact the OC and verify.

Sub: #1 posted on Thu, 07/17/2008 - 16:03

Moderators Cum Industry Expert
(Posts: 4665 | Credits: 308.23)

I have been receiving their statement monthy which states that the money was going to the account, and then I received this alert. Before I stated with debt consolidation the account status was not charged-off. I am just worried and confused about this.

Sub: #2 posted on Thu, 07/17/2008 - 18:37


Do you think I should call the creditor to see if they have been receiving the payments?

Sub: #3 posted on Thu, 07/17/2008 - 20:04


Charge off is an accounting term describing an account that is up to 180 days late. Call them to verify payments and try to get them to keep collections in house while paying it off.

Sub: #4 posted on Thu, 07/17/2008 - 20:20

cajunbulldog cajunbulldog
(Posts: 4859 | Credits: 425)

I just called my counselor, she said that the payments have been going to the creditor, that they accepted the payments and everything looks ok, and that if I should get anything in the mail by them, to notify them. I told her the charge off was just added recently as of 7/12.

The creditor is Macys and this is debt reduction Services.

Sub: #5 posted on Thu, 07/17/2008 - 20:50


Does an account that was charged off automatically mean that it was sold to a collection agency? my status says: Account Status Changed from At least 120 days or more than for payments past due to Bad Debt; placed for collection
Does that mean that you are going to be sued? I don't know what to think. Thanks

Sub: #6 posted on Fri, 07/18/2008 - 10:41


Honestly, if the creditor has charged off the debt, I would no longer pay any kind of business promising debt reduction. Your credit is now poisoned with lates and charges offs -- at this point you might want to call your creditor and inquire on any kind of debt reorientation program they have that can bring you current if they still own the debt. That is the key, your creditor can still own a debt that they have charged off, so do not assume that they have sold it just because it is charged off per your credit reports.

Good luck.

Sub: #7 posted on Fri, 07/18/2008 - 10:48

Codie Codie

(Posts: 26 | Credits: 2.87)

No, a charged off account is not automatically sold to a collection agency. Charged off just means that the creditor is no longer carrying your balance on their accounting records as an "asset." Some creditors still keep charged off accounts in house and some sell them to collection agencies. Also, placed for collection does not mean that you are going to be sued. If you are sued, you should receive a summons to appear in court. The easiest way to find out whether your account is still with the original creditor would be to call and ask them.

Sub: #8 posted on Fri, 07/18/2008 - 10:52

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

Thanks Codie. I am so upset. I feel that I could have been doing this on my own, I get these statements from them showing me that this amount was sent to them and then I start getting the alerts from my credit report. I noticed too that they not only have it listed as a charge off but they now have reduced the amount and applied the payments.

Sub: #9 posted on Fri, 07/18/2008 - 10:54


CCCA payments will not stop the aging of debt. Unless your payments are enough to bring the account current, you will continue to rack up late fees and interest.
Think of it this way: Your minimum monthly payment on a CC is $100. You can't afford $100, so you send $50 instead. The $50 will be applied according to your agreement with the OC (% to prin, int, late fees, other charges) however, this does not bring the account current. The $50 you could not afford to pay will carry over to the next month... and the snowball has begun. CCCS doesn't help you - it gives you a false sense that your debt will stand still in time while you make smaller payments, when in fact, the fee the CCCS is taking by becoming a middleman could be extra $$ you could be paying to your OC, causing your debt to drop more each month.
Quit wasting your money, send the money to the OC and quit giving it away to CCCS.

Sub: #10 posted on Sat, 07/19/2008 - 01:37


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