A charge-off means the creditor wrote your unpaid account off its books as a loss, usually after about six months of missed payments. You may still owe the debt, and the account can be sold to a collector. A charge-off can be reported for seven years from the delinquency that led to it.
Also called: charged off, charged off as bad debt, written off, charged to profit and loss
What it means
A charge-off is an accounting step the creditor takes, not a deal with you. When an account goes unpaid long enough, the lender writes it off as a loss and closes it to new charges. Experian says creditors typically do this after roughly six missed payments, about 180 days, though it can happen sooner.
The charge-off does not erase the debt. The creditor can keep trying to collect, or it can sell the account to a debt buyer or place it with a collection agency. Experian notes that when a collector takes over and reports the debt, the charged-off account should show a $0 balance and a separate collection account appears.
Where it comes from
The FCRA calls this being “charged to profit and loss.” Under 15 U.S.C. § 1681c(a)(4), a bureau generally cannot report a charged-off account that is more than seven years old. Section 1681c(c) says the seven years start 180 days after the delinquency that led to the charge-off began. The furnisher must report that delinquency date within 90 days of reporting the charge-off (15 U.S.C. § 1681s-2(a)(5)(A)).
The FTC’s 2011 staff report explains that the clock does not restart when the debt is sold, when you make a later payment, or when you dispute it. That date is the date of first delinquency.
Common errors
- A charged-off account that still shows a balance after it was sold, so the same debt appears to be owed to two companies.
- A charge-off that stays past the seven-year limit because the delinquency date was reported wrong or re-aged.
- A charge-off on an account you paid, settled, or included in bankruptcy before the write-off.
- A charge-off on an account that was never yours.
How to dispute it
Pull all three reports and compare the dates, balance, and status. Dispute in writing with each bureau that shows the error, and consider sending the creditor a direct dispute too. Attach proof: a payoff or settlement letter, a bankruptcy discharge, or a letter showing the account was transferred. Our time limit calculator can check whether the item should already be gone.
When it can be an FCRA violation
Reporting an accurate charge-off is allowed. Problems arise when a bureau keeps an obsolete charge-off, or when a bureau or creditor verifies a wrong balance, date, or status after you dispute it with proof. Those facts can support claims under 15 U.S.C. §§ 1681e(b), 1681i, and 1681s-2(b).
If a charge-off error stays on your report after you dispute it, FCRA Attorneys offers a free case review, and you pay no fee unless we win.
Related
- Paid charge-off
- Settled for less than full balance
- Date of first delinquency
- Collection account
- Debt buyer
- Derogatory mark
- Transferred or sold
- Charged-Off Account Still Showing a Balance? When It's Accurate and When It's Not
- Credit report time limit calculator
- How to Dispute Credit Report Errors With Equifax, Experian and TransUnion
- Dispute letter builder
Sources
- 15 U.S.C. § 1681c, requirements relating to information contained in consumer reports (Cornell LII)
- FTC, 40 Years of Experience with the Fair Credit Reporting Act (2011)
- Experian, What Is a Charge-Off?
- 15 U.S.C. § 1681s-2, responsibilities of furnishers of information (Cornell LII)
Updated November 2026. This glossary is written by FCRA Attorneys from public sources. It is general information, not legal advice, and is not affiliated with any credit bureau or industry association.