Charge-off Feed Link

Charge-off

A charge-off (or chargeoff, charge off) is the declaration by a creditor that a debt, typically a credit card account, is unlikely to be collected. This occurs when a consumer becomes severely delinquent on a debt. Traditionally, creditors will charge off an account when it has been delinquent for 180 days.

After an account is charged off, a creditor may still pursue payment by outsourcing it to a third party debt collection agency, selling the debt to a debt purchaser, or forwarding the account to an attorney to consider legal action. If the activity results in a recovered amount, it is added back to the creditor’s books. As such, most credit grantors report a “net charge-off” figure, which factors in recoveries after charge off.

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Maryland Debt Collection Litigation Bill Signed Into Law

SACRAMENTO, Calif. — On Thursday, May 19th, Maryland Governor Larry Hogan signed SB 771/ HB 1491 (Chapter 579) into law, addressing the treatment of out-of-statute debt and statutorily codifies several provisions contained in the Maryland Rules of Procedure (MRP) concerning the litigation of consumer debt. Given that the language from the MRP was copied verbatim, DBA International […]

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Bank of America Hit With Class Action Over Debt Collection Litigation on Securitized Accounts

A putative class action suit was filed yesterday against Bank of America alleging that that the bank has been improperly suing consumers who owe credit card debt after the bank had previously “sold” that debt via a securitization of a pool of accounts. The case has the potential to dramatically impact future collection practices regarding securitized accounts.

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Class Certification Rejected in Alleged FDCPA/RICO Suit Against Sherman Financial Group

A federal judge in Indianapolis has ruled that a lawsuit alleging violations of the FDCPA and the United States Racketeer Influence and Corrupt Organization Act (“RICO”) against Sherman Financial Group, one of the country’s largest debt buyers, cannot proceed as a class action because circumstances vary too much among the class members. Assuming this decision withstands any subsequent appeal it appears that Sherman made a good decision to vigorously defend the case.