Tuesday, June 25, 2013

What Does 'Written Off' Mean on a Credit Report?

What Does 'Written Off' Mean on a Credit Report?

"Written off" can appear in a credit report when the debt has been unpaid after collection action by the company has been pursued, according to Maxine Sweet of Experian, a credit-reporting agency.

Definition

    "Written off" means the company has discharged the debt from its own books.

Outcome

    A debt that has been written off does not mean it has been wiped out. Many times, the debt has been sold or transferred to a collection agency.

Effect

    A written-off or charged-off account reflects poorly on your credit report and credit score.

Collection Effort

    Attempts to collect the debt will continue even after the debt has been charged off. A new account will appear on the credit report by the collection agency.

Payments

    Any payments made on the debt will be made to the collection agency rather than the originating company.

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