Best 5 Charge Off Laws for People in Debt

By Natalie Johnson

Did you know there are laws to protect consumers who have charge offs on their credit reports? There are over 20! These are the top 5:

Charge Off Law #1:
Right to Counsel Disputing a charge off with the creditor and credit bureaus can get ugly. Historically, credit bureaus have been fined multiple times for ignoring charge off disputes.

A charge off on your credit history is big deal. It can keep you from owning a home, getting loans for transportation, or getting credit for much needed medical care.

That´s why you have the right to hire a credit lawyer who can dispute charge offs on your behalf. (Don´t listen to a credit bureau worker or banker when they say you can´t get credit repair help.)

Charge Off Law #2:
The FCRA The Fair Credit Reporting Act was enacted in 1970. It is the federal law that regulates consumer information. Along with the Fair Debt Collection Practices Act it exists to protect you, the consumer.

Under the Fair Credit Reporting Act creditors have only a MAX of seven years to report your delinquency to the credit bureaus. - That means seven years from the time of the original delinquency.

Seven years is a very long time. You don´t have to wait the entire seven years however. Seven years is the MAX. You can take action at ANYtime to dispute and erase a charge off. Consider sending a charge off dispute letter to the bureaus reporting the charge offs.

Charge Off Law #3:
State Law Each state has its own laws regarding statute of limitations and debt. This means each state regulates how much time is allowed for a creditor to sue you for a debt.

Did you know that collection agencies sue people every day for charge offs (which then result in judgments) way past the statute of limitations. It is no one´s responsibility but your own to raise the question of statute of limitations.

Charge Off Law #4:
Debt Validation It is your right to ask a creditor for a validation of debt including charged off debt. If the charged off account is now in the hands of a collection agency, then by law they must provide you with the name of the original creditor and the amount owed.

They might not do this and you´re stuck with the charge off. Debt validation is more advanced for the do-it-yourselfer. I had Lexington Law file debt validation - which worked because the collection agency immediately erased the charge offs. Here´s the debt validation hotline number: 1-866-246-7311.

Charge Off Law #5:
Demand Proof Even if the creditor/collection agency has provided a validation of the charged off debt, it is your right to request additional proof.

It is the law and they must provide you with a copy of any and all contracts you signed concerning the debt. You can also request them to provide you with a copy of the last bill right before the account was charged off.

A charge off on your credit report is very damaging to your credit score and your ability to obtain credit. Interpreting the laws and knowing which apply to you can be confusing. To chat with a charge off expert, call this number: 1-866-246-7311. There´s no charge and you´ll get answers you´re looking for about charge off laws.

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