You had a debt but instead of trying to collect it from you, they canceled it and took it off their books, but it still counts against you on your credit score. If they canceled a large debt like $1,000 or more, the IRS will count it as income and you'll have to pay taxes on that amount.
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A charge off is when a debt hasn't been paid and the creditors assumes it won't be paid.
They can: do nothing and write it off... sell. it to a collection agency... or sell it to a collection attorney who will sue you for the total amount of the debt.
Looks like you didn't pay what you owed so it was written off, I guess amid the pandemic but will sit on your record for whatever time usually 6 years
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