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Charge-Off
(redirected from Charge-Offs)

   Also found in: Dictionary/thesaurus, Financial, Encyclopedia, Wikipedia 0.01 sec.

Eliminate or write off.

The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless.

A classic case is the bad debt, which is an uncollectible debt. A bad debt is a permissible business tax deduction, and a non-business bad debt may also be claimed as a charge-off in the year the debt becomes entirely worthless. Charge-off is generally used in reference to a charge or debt that is not paid when due.



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However, charge-offs and non-performers remain near historic highs and are not improving as quickly as they deteriorated in 2009.
Global Banking News-16 June 2010-Bank of America reports drop in charge-offs in May(C)2010 ENPublishing - http://www.
Creditors often see charge-offs as an suggestion that a consumer has been negligent about their credit in the past and that they are a excessive risk for credit in the future.
 
 
 
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