CREDIT CARD DEFENSE CENTER OF NEW YORK

FREQUENTLY ASKED QUESTIONS

What Is a Charge-Off?

A charge-off is when a bank or another creditor writes delinquent debt off its books.

When My Debt Is Charged-Off Debt, Do I Still Owe It?

Yes, you do! Don't be fooled. Debt does not simply disappear when it is charged off.

WHAT DOES "CHARGED-OFF," "BAD DEBT," OR "PLACED FOR COLLECTIONS" MEAN?

This means that you failed to make a payment on the account for longer than 120 to 180 days without a payment from you.
CAN DEBT COLLECTORS ADD SURCHARGES (INTEREST, FEES, CHARGES OR EXPENSES) TO THE ORIGINAL DEBT?

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CAN I GET A JUDGMENT REMOVED FROM MY CREDIT REPORT?

Yes, often you can. But it depends on your particular circumstances.
IF I PAY A DEBT COLLECTION AGENCY THE FULL AMOUNT OWED, HOW WILL MY CREDIT REPORT BE AFFECTED?

In this situation, the consumer’s account will show a zero balance, but it will still have a notation explaining it was paid unsatisfactorily. Whether the consumer pays the full balance or pays a lesser amount agreed upon by the debt collector, an adverse notation generally remains on the consumer’s credit report for seven (7) years from the date the account was charged off as uncollectible. If a debt collector tries to convince a consumer that the payment will remove all negative notations associated with that account from the consumer’s credit report, the collector should send this commitment in writing to the consumer.
IS THERE A STATUTE OF LIMITATIONS (A TIME PERIOD FROM WHICH COLLECTORS CAN REQUEST PAYMENTS) ON DEBTS IN NEW YORK STATE?

Yes. Generally in New York a creditor has six (6) years, starting from when the last payment was due and not paid, to sue a debtor to collect on the amount owed. Although a creditor may attempt to sue a debtor after this period of time, the creditor will not be successful if you defendant the lawsuit. Additonlly, in NYS this law if curently chaging in the cimg months snd being reduced in time. We are now studying this new law, and will update this FAQ as necessary and warrented.