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what is the difference between Bad debt/collection and paid charge off on credit report. my fico use to say paid charge off, but then switched to bad debt/collection. i paid off the full amount of a delinquent credit card about 2 years ago.
Hi Rp
It means that before you paid off the debt in full, it was charged off by the original creditor and has been sold off to the collection agency. Even if you pay a charged off debt, it remains in your credit report for seven years. You must have paid the outstanding debt to the collection agency who purchased your debt. Now since you have paid the charged off account, it will show as "paid charge off" in your credit report and will remain as negative for seven years and six months from the date you first defaulted on the credit card payment.
Yes, I agree with Justin. The only positive thing is that, since you have paid off the debt in full and the debt is reported as "paid charge off" in your report, you will not face any judgment for outstanding debt recovery. Charge off does not mean that you are no longer liable for the debt and if the charge off is not paid the creditor can sue you and bring judgment against you to recover the debt through garnishment.
I do not think this is what the poster is trying to say. He is saying it went from paid charge off to bad/debt collection. It would appear to me if it shows bad debt/collection then it is being reported as unpaid. Who exactly was paid two years ago? Was it a debt collector or the original lender?
capitol one services, which says on the letter is a subsidiary of capitol one bank. both were from a capitol one credit card i paid off for the full amount two years ago. fireyone was right, it says bad/debt collection on my report now. i still have the letters and money order copies, i thought they may come in handy down the road. and thanks for the replies guys, and girl!
Credit Report Term
What might it mean when a credit report shows a status of Paid Profit and Loss and payment after charge off and the balance is zero? Does Paid Profit and Loss mean some other company has paid the balance?
Hi Rita
Profit and loss charge-offs are debts that are considered non-collectable by a debtor. Even in such a case you still owe the money although it has been written off. If you apply for a fresh loan, you will have to first clear-off these debts.