Take Control

The first company in Australia to provide consumers with online access to credit reports.




  

Write Off

Definition of 'Write Off'

A write off in credit terms happens when a lender believes that there is no prospect in the short and medium term of obtaining repayment of a debt.

Rather than keep the account on the lender’s books, the loan is written off, which means that it is recognised that the debt, which once formed an asset on the lender’s balance sheet, is no longer regarded as being recoverable.

The write off is simply for accounting purposes. It is important to note that the underlying debt remains legally due. A write off is not an acceptance of leniency by a lender to a borrower. The lender can still choose to try to recover the debt, even by legal means, if not statute barred, at any time. Written off debts can also be sold to debt collectors, so that they can have another stab at getting money back.

A write off record on a credit report is a very serious adverse entry. It warns other lenders that not only is there a history of collections action, but also that there are no assets or income to go for in a recovery situation. The risk of loss if lending to someone with a write off on their credit report is therefore very high.

Use the links below to locate the term you are looking for. If you can't locate it, please get in touch.

Credit Jargon Starting 'G'

Credit Jargon Starting 'I'

Credit Jargon Starting 'J'

Credit Jargon Starting 'L'

Credit Jargon Starting 'M'

Credit Jargon Starting 'S'

Credit Jargon Starting 'T'

Credit Jargon Starting 'V'

Credit Jargon Starting 'W'

Accepted Payment Methods: VISA and MasterCard

©Checkmyfile Pty Ltd 2007 to 2019. All Rights Reserved.

Check your Australian Credit ReportCheck your UK credit report