Mistakenly Charged Off

Mistakenly Charged Off

A bank charging off a person’s bank account is harmful to a consumer credit report. Sometimes charge-offs can mistakenly continue after a consumer has paid off their debt. Troy Doucet, the firm principal at Doucet & Associates Co., L.P.A., shares his legal advice on what a consumer can do to protect their credit report from a false charge off in Help! The Bank Charged Off My Debt – After I Paid It.

A charge-off is when the bank writes off the consumers loan on its accounting financial statements. Usually this action will appear on a credit report as a charge-off and can lower a consumer’s credit score. There are ways to correct a false charge-off appearing on a consumer bank statement and credit report.

A consumer should notify the bank when seeing an invalid charge-off on a bank statement. The consumer should question if money is still owed on a previous debt and the reason for the charge-off if it is disputed. A consumer who discovers a false charge-off on a credit report has the right to correct the problem under the Fair Credit Reporting Act (FCRA).

The FCRA protects consumer right to have an accurate credit report distributed to lenders. A consumer can send a letter to a credit reporting agency such as TransUnion, Equifax, and Experian to request a change in false information. A consumer should provide all documents possible to support why the information is false. A credit reporting agency must then re investigate the credit report and verify with the consumer that the information was corrected. A false charge off on a credit report can substantially affect a consumers ability to receive a loan and low interest rates.

More information about the Fair Credit Reporting Act (FCRA) can be found in 23 Legal Defenses to Foreclosure: How to Beat the Bank by Troy Doucet.

Check out some of our related articles about credit report errors:

Five steps: How to correct a credit report error

Do you want to improve your credit score?

Fair Credit Reporting Act

 

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