Incorrect.
From 3E SRD: "The charge stops as soon as the character threatens the target."
You threaten the target when you get within threat range, not when you actually attack. The fact that you then no longer threaten the target because of the readied action is irrelevant.
The 3.5 rules go into more detail, but the 3.5 SRD is down at the moment.
Basically, they state something to the effect that the charge has to be in a straight line to the closest space to the target (or some such). But, you still stop at that point. There are no rules for continuing the charge (there are rules for continuing an Overrun, but not for a charge).