Can a Charge-Off Be Removed From a Credit Report?

What “Removed” Really Means for a Charge-Off#

Under the Fair Credit Reporting Act, a consumer has the right to dispute items on a credit report believed to be incorrect, and only incorrect information can actually be removed from the report. This means a charge-off that is accurately reported cannot be taken off simply because the consumer wants it gone.

How a Charge-Off Happens in the First Place#

A charge-off is not optional for the creditor. Creditors have a legal obligation to charge off accounts once they reach a certain number of days past due.

How Long a Dispute Investigation Takes#

When a consumer disputes a charge-off, the credit reporting agency has a set amount of time to investigate, and the timeframe depends on how the report was obtained.

Check All Three Credit Bureaus for Errors#

When checking for inaccurate credit report information, a consumer should obtain reports from all three credit bureaus, because creditors often do not subscribe to all three. A charge-off error on one report may not show up on another.

If the Investigation Does Not Resolve the Dispute#

If a credit report dispute investigation does not resolve the dispute, the consumer has the right to add a 100-word statement to the credit report about that specific account. This statement stays with the account and gives the consumer’s side of the story even if the charge-off itself remains.

What Happens When Information Cannot Be Verified#

If disputed credit report information cannot be verified within the 30-day timeframe, it is deleted from the credit report or updated as requested. However, if the information is later verified, it is reinserted into the report and the consumer is notified.

Paying or Settling a Charge-Off: What Changes and What Does Not#

Setting up a debt management plan with us may adversely affect your credit, though the effect may be temporary as you remain committed to making monthly payments through your Debt Management Plan. If a debt is left unpaid, creditors may increase finance charges or take further collection action, including litigation. Paying or settling a charged-off balance can change the account status shown on the report, such as marking it paid or settled, but it does not undo the fact that the account was charged off in the past.

Why No One Can Guarantee a Score Increase#

No company can lawfully guarantee a specific increase in a credit score, and a promise of a set number of points is a sign of a credit repair scam. We share this warning because consumers dealing with a charge-off are often targeted with these kinds of promises.

What to Do Next#

Consumers are entitled to one free credit report per year from each of the three major credit reporting agencies. A practical next step is to request all three, check each one for a charge-off that may be listed inaccurately, and use the formal dispute process under the Fair Credit Reporting Act for anything that looks wrong. Only information that is actually incorrect can be removed from the report.