Low Rate Loans

What a Write-Off Means

1. A write-off is also referred to as a charge-off, which occurs when the lender transfers the account into collections and no longer holds the debt as part of the accounts outstanding in the office. The write-off is taken out of the lender’s profit and can be written off as part of a business expense when filing tax returns.

What Happens to the Title

2. The lender will hold the title to your automobile until you settle the bad debt. Without the title, you will not be able to trade or sell the automobile. If you fail to pay the charge-off, the lender may decide to repossess the vehicle if it is the only way the lender can regain some of its money back.

You Still Owe the Debt

3. Even though the lender wrote off your account as bad debt, you still owe the debt. It is generally transferred to a collection agency, which will be able to take payment arrangements or offer you a settlement, which is a reduced amount.

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This entry was posted on Wednesday, August 11th, 2010 at 6:07 pm and is filed under Loan Review. You can leave a response, or trackback from your own site.