Financial

Charge-Off

A charge-off is an accounting action a creditor takes when it concludes a debt is unlikely to be collected, typically after 120–180 days of non-payment, and moves the balance from an active receivable to a loss on its books. A charge-off does not cancel the debt — the borrower still owes it, and the creditor may continue collecting it directly or place it with a collection agency.

What Charge-Off means for creditors

For creditors, a charged-off account is not a dead account. Placing charge-offs with a specialized agency like MSB recovers revenue that has already been written down, turning an accounting loss back into cash.

Midwest Service Bureau has recovered commercial, medical, utility, and government debt for creditors nationwide since 1970 — on a no-recovery, no-fee basis. Questions about charge-off or a portfolio you'd like reviewed? Call (800) 362-0272.

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