Remove Charge Offs
August 28th, 2008 by Matt Douglas
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Having a charge off on your credit file will negatively impact your score. This will often prevent you from being approved for new credit.
If approval does occur it will be contingent upon you placing a big down payment and paying a high interest rate. This is the punishment creditors place on individuals when they are unable to pay their bills.
Unfortunately the system doesn’t factor in that sometimes life just happens and some things are beyond our control. Often good people are faced with the choice of eating or paying a bill.
Credit bureaus want you to think that when a charge off occurs you are stuck. That you will have to pay the penalties until the negative listing is naturally removed with time. This is false.
According to the Fair Credit Reporting Act any inaccurate or unverifiable listing must be corrected by the credit bureau. Often creditors are not willing to spend the money or time to verify non collectable debts.
Regardless of the veracity of the listing it is typically removed when an investigation occurs. However complications happen in the initial stage of requesting the investigation.
This is because it costs the credit bureaus potential profits to investigate a listing. There is no money for the credit bureaus to make off an investigation and the only incentive is to comply with legislation.
Credit bureaus are notorious for using stall tactics, this is done to discourage and frustrate the individual. The goal of the credit bureaus is to force the individual into giving up on the dispute process. Many people have frequently found it more effective to hire a professional firm to deal with the credit bureaus on their behalf.
