Quick question for US posters.

[WOM]

Does the phrase 'charged off' mean anything to you, re: debt or debt collection? I suspect we're being asked to use internal bank speak with consumers.

[matt j]

I've mostly heard it in relation to hospital bills unlikely to be paid by the uninsured. A debt unlikely to be collected.

[WOM]

Would your average consumer understand it?

[caja-dglh]

I would think customers relate better to "writing off" debt than "charging off". Though accounting for a bank is a charge off, to the recipient I suspect using charge makes them expect to pay (rather than benefit).

[matt j]

Average American consumer? I'd guess very unlikely, especially 'the how and why' the debt disappears in any level of detail.

It's definitely more of a 'lender' term. (E.g. i I know it's used by lending club, from personal experience)

edit: also agree with caja.

[ursus arctos]

Agree with both of them. Not in wide use at all

[Hot Pepsi]

[WOM]

I would think customers relate better to "writing off" debt than "charging off". Though accounting for a bank is a charge off, to the recipient I suspect using charge makes them expect to pay (rather than benefit).

Apparently 'charging off' in this context means that the bank moves it to a collection agency. It's not going away, and you're going to start getting nasty phone calls.

Thanks all.

[Ginger Yellow]

Yeah, the problem with calling it writing off with a customer is that the customer would assume they're not going to have to pay it, where really it's just (well, primarily) an accounting thing for the lender.

[San Bernardhinault]

It's probably redundant to say so at this point given that everyone else already agrees, but I've never heard the term "charge off" in that context.

[treibeis]

My birthright doesn't qualify me, but I've seen enough films.

Normally, the phrasal verb "charge off" is used by Pauli, a semi-drunk in a bar. After he's had too much, he asks Gordi, the barman, "Hey, Gordi, did I charge off your niece?"

Then Gordi says, "Like hell, you bum. But I charge off your DAUGHTER every day of the goddamned week."

Then they have a little man-wrestle, then Gordi gives Pauli a short.

[WOM]

Hey Lou, another Skittlebrau for my friend treibeis....

[Satchmo Distel]

Never heard the phrase and I've been here since 2006.

[caja-dglh]

Apparently 'charging off' in this context means that the bank moves it to a collection agency. It's not going away, and you're going to start getting nasty phone calls.

Thanks all.

Then you say moved to a collection agency. The fact that they sold it for probably 3 cents on the dollar to them isn't really important (unless they understand this facilitates them cutting a deal).

[WOM]

What is the standard 'cents on the dollar' sale price of, say, US credit card debt?

[caja-dglh]

For Credit Card debt it is probably somewhat higher - settlements are typically below 50% though as it is unsecured. Behaves a lot differently than medical debt (which is absurdly cheap and difficult to collect).