Having a charge off on your credit file will negatively impact your score. This will often prevent you from being approved for new credit.

When approval does happen you will be forced to pay exuberant interest rates or make a hefty down payment. This is how lenders penalize people when they are incapable of making their payments.

This system does not recognize that catastrophic events occur. When someone is faced with the decision of feeding their family or making a payment, the choice is obvious.

Credit bureaus have caused a false belief that when a charge off happens there is no recourse for the individual. That person will have to pay the high interest rates and large deposits for 7 or more years. This is not true.

According to the Fair Credit Reporting Act any inaccurate or unverifiable listing must be corrected by the credit bureau. Often creditors are not willing to spend the money or time to verify non collectable debts.

So when investigations occur listings are usually removed despite the correctness of the listing. When we hear how hard it is to repair your credit it is in regards to getting the investigation started.

This is because it costs the credit bureaus potential profits to investigate a listing. There is no money for the credit bureaus to make off an investigation and the only incentive is to comply with legislation.

Credit bureaus are notorious for using stall tactics, this is done to discourage and frustrate the individual. The goal of the credit bureaus is to force the individual into giving up on the dispute process. Many people have frequently found it more effective to hire a professional firm to deal with the credit bureaus on their behalf.