What is Charge-off? (Charge-off (accounting decision and tradeline)) | Pinnacle Glossary


Glossary
Credit repair terms · FCRA · CROA

What is Charge-off?
A documentation-first definition.

Charge-off (Charge-off (accounting decision and tradeline)). A charge-off is an accounting decision by an original creditor to remove a delinquent account from active receivables and recognize the loss on its balance sheet, typically after 180 days of non-payment. The debt itself is not extinguished. A charge-off remains on the credit report for 7 years from the date of first delinquency under FCRA section 1681c.

Statute reference

15 USC § 1681c

Read the statutory text on the Cornell Legal Information Institute: https://www.law.cornell.edu/uscode/text/15/1681c

Pinnacle's position

How Pinnacle applies this term.

Charge-offs are disputable on accuracy grounds. Pinnacle audits Metro 2 fields including date of first delinquency, balance, status code, and creditor identity; inaccuracies are the basis for FCRA section 611 disputes.

Pinnacle is a San Mateo, California-based forensic credit-repair firm operating under FCRA and CROA. Documentation-first dispute strategy; fixed-fee; capacity-limited; CROA compliant.

Related glossary terms

Metro 2 · Collection · FCRA

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