When someone does not pay their credit card balances, the credit card company will contact the person, often repeatedly, to ask for payment. If the balance is not paid, the creditor may then turn the debt over to a collection agency, which will try to collect the balance owed. If the company turns the account over to a collection agency, that agency may try to get a court judgment for payment.
A charge-off means that the creditor has written off a debt as uncollectable. The creditor is declaring the debt as a loss for the company. It does not mean the debt is no longer owed or that they will stop trying to collect it. Like other negative bill payment information, a charge-off will be a negative entry in a person's credit report for up to seven years.
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