Collections & Charge-Offs on Your Credit Report

A collection account or charge-off can drag your score down for years. Many of these accounts are reported with wrong balances, wrong dates or by companies that can't prove they own the debt. MetaCredit helps you challenge what's inaccurate and hold collectors to the rules.

What is a charge-off?

A charge-off happens when the original creditor writes a debt off as a loss, usually after about 180 days of non-payment. The debt can still be owed, and it is often sold to a debt buyer or placed with a collection agency — which is how one debt can end up reported twice.

Problems we look for

• A collector reporting a balance different from what you actually owe
• Both the original creditor and a collector reporting a balance on the same debt
• A wrong date of first delinquency, which can keep an account on your report too long
• Accounts older than the 7-year reporting period
• A debt that was paid, settled or discharged in bankruptcy but still shows a balance
• A collector that can't validate the debt or show it owns it

How we help

1. Audit all three credit reports for every collection and charge-off.
2. Send debt validation requests to collectors, asking them to verify the debt.
3. Dispute inaccurate reporting with the credit reporting agencies (CRAs) and the furnishers.
4. Track deadlines and responses, and document any violations.
5. Where the law was broken, help you pursue claims under the FCRA or FDCPA.

Debt validation, explained

Under the Fair Debt Collection Practices Act, a debt collector must send you a validation notice describing the debt. If you dispute the debt in writing within the validation period, the collector must stop collecting until it sends you verification. This is one of the most useful tools a consumer has.

Frequently asked questions

Will paying a collection remove it from my credit report?

Not necessarily. Paying can update the account to paid, but an accurate collection can still remain on your report. Talk to us before paying so you understand your options.

How long do collections stay on a credit report?

Most negative items, including collections and charge-offs, can be reported for up to 7 years from the date of first delinquency on the original account.

Can a collector report a debt it can't prove?

Collectors and the CRAs must report accurately and investigate disputes. If a debt can't be verified, it should not be reported as accurate.

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Educational only. Not legal advice. James Wilhite is not an attorney at law. MetaCredit is not a law firm and does not provide legal representation. Results depend on the facts of each case and are not guaranteed.