Skip to main content
U.S. flag

An official website of the United States government

Customer Assistance: 1-800-613-6743

Get Answers to Your Banking Questions

My loan was charged off. So why is the bank still requiring payment?

When a bank charges off a loan, it is an accounting procedure. It does not eliminate your obligation to the bank. Unless the bank forgave or cancelled the debt, you are still obligated to repay the loan.

Once a loan has been charged off, the bank may attempt to collect the debt itself, or in some circumstances, it can sell the account to a collection agency.

Review your loan agreement for policies specific to your bank and your loan.

Last Reviewed: April 2021

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

Still need help?

Contact Us