Credit Glossary
- Charge Off - means that a creditor has decided to treat an account receivable (or debt) as a loss because payment is unlikely. Basically the creditor will charge off a debt when it has given up in collecting a debt. A creditor usually sells a charged off debt to a third-party collection agency to recoup some of its loss. This results in both the original creditor and the collection agency reporting negative items on a person's credit report.
- Default - the failure to pay a debt when due, or honor a contractual obligation.
- Default Judgment - a judgment entered against a defendant who has failed to plead or otherwise defend himself against a creditor's lawsuit.
- FCRA - Fair Credit Reporting Act. These laws govern credit reporting.
- FDCPA - Fair Debt Collection Practices Act. These laws govern collection agencies in the collection of debt.