What does "Charged Off" mean?

[netz]

Can anyone explain to me what does "charged off" mean?

Avant card on the phone to me asking for a short settlement figure to charge off account.

Does this mean a full and final settlement, or do they take the short settlement and pass the rest on to a debt collector?

 

[Time]

That is a full and final settlement.

 

[Brendan Burgess]

Hi Time

How does it work in practice?

Do they issue a letter formally agreeing not to pursue the shortfall?

Brendan

 

[Time]

They normally just issue a letter saying the amount has been accepted in full and final settlement and that the account is now closed.