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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.

bandwagon

CBA Joins the Bandwagon; Files Petition to the FCC for Declaratory Ruling

The Consumer Bankers Association (CBA) has filed a petition for review of the FCC’s July 10, 2015 Declaratory Ruling and Order in the US Court of Appeals for the District of Columbia Circuit. The CBA Petition will be consolidated with the prior Petitions filed by ACA International and others and will be heard as a single case before the Court of Appeals for the District of Columbia.

Big Boy Bobbles - Victory of the People

Eleventh Circuit Court Cites “Plain Language” of the FDCPA, Rules in Favor of Capital One in Debt Collection Case

If an entity acquires a debt in default and tries to collect on it, does that automatically make it a “debt collector” under the Fair Debt Collections Practices Act? Several courts, including the Third, Seventh, and Sixth Circuit Courts of Appeals, all said yes it does. In a surprise ruling earlier this week, however, the […]

using-credit-cards

CFPB Seeks Input on Credit Card Market, Including Collection and Debt Sales Practices

The CFPB announced Tuesday it is seeking public comment on how the credit card market is functioning and the impact of the Bureau’s credit card protections on consumers and issuers. This inquiry will focus on issues including credit card terms, the use of consumer disclosures, credit card debt collection practices, and rewards programs.

using-credit-cards

Credit Card Markets Rebound as U.S. Economy Improves

The U.S. credit card market bounced back in the second quarter as the economy improved, according to the American Bankers Association’s December 2014 Credit Card Market Monitor report. The number of new accounts increased and monthly purchase volumes picked up, while the distribution of accounts resumed its shift away from “revolvers” who carry balances month-to-month.