Definitions for Charge-off
charge-off

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1. Charge-off

   A charge-off or chargeoff is a declaration by a creditor (usually a credit card account) that an amount of debt is unlikely to be collected. This occurs when a consumer becomes severely delinquent on a debt. Traditionally, creditors make this declaration at the point of six months without payment. A charge-off is a form of write-off.

WikidataRate this definition:0.0 / 0 votes

1. Charge-off

   A charge-off or chargeoff is the declaration by a creditor that an amount of debt is unlikely to be collected. This occurs when a consumer becomes severely delinquent on a debt. Traditionally, creditors will make this declaration at the point of six months without payment. In the United States, Federal regulations require creditors to charge-off installment loans after 120 days of delinquency, while revolving credit accounts must be charged-off after 180 days. The purpose of making such a declaration is to give the bank a tax exemption on the debt. Bad debts and even fraud are simply part of the cost of doing business. The charge-off, though, does not free the debtor of having to pay the debt. A charge-off is one of the most adverse factors that can be listed on a credit report. It will then be listed as such on the debtor's credit bureau reports The item will include relevant dates, and the amount of the bad debt. While a charge-off is considered to be "written off as uncollectable" by the bank, the debt is still legally valid, and remains as such after the fact. The creditor has the right to legally collect the full amount for the time periods permitted by the statutes of limitation based on the location of the bank and where the consumer resides. Depending on the location, this amount of time may be a certain number of years, or in some places, indefinitely. Methods of collection that can be used include contacts from internal collections staff, outside collection agencies, or if the amount is large, there is the possibility of a lawsuit or arbitration.

How to pronounce Charge-off?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say Charge-off in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of Charge-off in Chaldean Numerology is: 6

2. Pythagorean Numerology

   The numerical value of Charge-off in Pythagorean Numerology is: 6

Examples of Charge-off in a Sentence

1. The CFPB:

   But then, as the economy recovered, credit card companies did not decrease their prices accordingly, despite seemingly lower risk of default, during the Covid-19 pandemic, issuers' margins and charge-off rates diverged even further.

2. Dieter Scherer:

   We may see more consumers making a large purchase they had been putting off because it seems relatively more affordable, we'll likely see credit card rates decline by a small amount in response to the cut in the target federal funds rate. However, charge-off rates have been increasing over the past few years, which has also contributed to increased credit card rates among less credit-worthy consumers. So, I'd expect the effect to be more muted among those with low credit scores.

References

1. ^ Wikipedia
   https://en.wikipedia.org/wiki/Charge-Off
2. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=Charge-off