A charge-off usually occurs when the creditor has deemed an outstanding debt is uncollectible. This typically follows 90 days or three months of non-payment. The days to charge-off may vary based on asset class or lender strategy. In addition, debt payments that fall below the required minimum payment for the period will also be charged off if the debtor cures the delinquency caused by the shortfall. The creditor identifies the consumer’s debt as uncollectible and may report to the consumer credit reporting bureaus as a charge-off.
Let's partner together on loans before charge-off and after charge-off. We focus on the loans and portfolios performing below expectations and provide additional value through our experience, in-house software and focused call center strategies.