What is a Charge Off?
If you come across the term “charge off” on your credit report, you may think that it means the debt can no longer be collected. Unfortunately, that is not the case. When a debt has been charged off, it has most likely turned over to a collection agency for collection. In some cases, the collection agency is being paid to collect the debt for the original lender. In other cases, the debt has been sold by the lender as now in the hands of a collection agency who will attempt to collect the debt for their own gain. In either case, you are still responsible for the debt.
How is a Repossession Different?