When a consumer fails to make timely payments and becomes severely delinquent on a debt, their creditor may “charge off” the account, meaning that the creditor does not anticipate repayment in the near future. This in no way affects your obligation to pay what is owed, but it does mean that the account will change hands and you will be pursued for payment by a collector.
As a delinquent account ages, such as an old credit card debt, the effect the account has on your credit score should lessen. However, it is not uncommon for collection agencies to report the date that they purchased an account as the date the account was last active rather than the date that the original creditor charged off the account, lengthening the amount of time your debt affects your credit score. This is a commonly abused area of credit reporting which could unfairly have a severely negative impact on your credit score.
How an Attorney Can Help You Fight Charge-Off Fraud
In order to correct this situation, it is important to contact a Chicago consumer lawyer at Atlas Consumer Law We can review your credit report and track the history of your debt from its original creditor to the current collection agency. For example, if we find that your original creditor charged off your account in June 2006, but the collection agency pursuing payment recorded a date of last activity in 2008, you have a dispute that warrants investigation. Our top-rated legal team is prepared to help you fight this fraudulent activity and have the negative information removed from your credit report.
Protecting Your Consumer Rights Since 2004
Atlas Consumer Law has tenaciously and intelligently protected the rights of consumers in Chicago since 2004. With years of combined experience and an A+ rating with the Better Business Bureau, you can feel confident turning to us for legal counsel. We encourage you to get in touch with a Chicago consumer lawyer at our firm to schedule an initial case review. Click here to fill out an online contact form, or simply call our office at (312) 313-1613. We’d be happy to help!