Quote:
Originally Posted by Rose76
Eventually the original lender, or the last collection company that owned the debt, will consider collecting it to be a lost cause. So that entity will take it off their list of assets. That is called "charging off" the debt. This, in no way, reduces the company's tax liability. It reduces the company's net worth.
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That makes sense, and I thank you for explaining further. The last call I received a few months ago was from a bill collector pretending to be a representative of the original creditor, and I just said "Oh no, no more from them for me!" and hung up. That had been a situation where the company had broken our agreement and then still tried to collect from me. In any case, that bill collector never called again...so I assume that one has been "charged off".