Author Topic: Check received after Charged Off  (Read 5057 times)

WES

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Check received after Charged Off
« on: May 12, 2012, 01:06:27 PM »
Collection Log:
4/18/12 Received check payment
3/26/12 Borrower contacted Collections Agency
3/18/12 Charged off. Payment 120+ past due.


So when will LC post to my investor account the funds received after charge off? Any clue as to how this works? It's been over three weeks since the payment was made and my investor account hasn't received a penny of the 4/18 payment.

simon389

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Re: Check received after Charged Off
« Reply #1 on: May 12, 2012, 10:37:22 PM »
I've seen this happen before ... rarely. LC put something like $4 of the original $25 note from collections back into the lenders account three months after they defaulted. It's not much, but its something.

Peter

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Re: Check received after Charged Off
« Reply #2 on: May 13, 2012, 07:59:17 PM »
WES, Yes it does happen occasionally but as Simon pointed out it will take a while to hit your account. And before it does that the collection fee will be deducted from the payment.
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rajuabju

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Re: Check received after Charged Off
« Reply #3 on: May 17, 2012, 04:45:10 PM »
Interesting.

Is it also common for a lawsuit to continue on after a note has been charged off? thats the case with mine.. was charged off a few months ago, but was updated about 6 weeks ago that lawsuit / hearing is pending.

Not getting my hopes up, but still good to know there a tiny chance of some recovery.

Peter

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Re: Check received after Charged Off
« Reply #4 on: May 22, 2012, 12:47:43 AM »
Interesting.

Is it also common for a lawsuit to continue on after a note has been charged off? thats the case with mine.. was charged off a few months ago, but was updated about 6 weeks ago that lawsuit / hearing is pending.

Not getting my hopes up, but still good to know there a tiny chance of some recovery.

The charge-offs happen automatically at LC and Prosper once a loan hits 120 days past due. So, there are plenty of example like this one where the payments can keep coming in. LC claims that there is a 4% recovery of defaulted loans but that is higher than what I have experienced.
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WES

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Re: Check received after Charged Off
« Reply #5 on: July 03, 2012, 07:15:21 PM »
I tracked down my recovery. Turns out it was credited to my account a few weeks back, but I didn't notice it, because it didn't show up in the collection log. It shows up under your Available Cash accounting, as "Recoveries" (income item) and "Collections" (expense item). It also appears on the individual note's history page as "Recoveries", but the collection fee is not shown here.

My gross recovery was .76%. My collection fee was 35% of that. I netted twelve cents.

Interesting, and amusing.

thezinfan

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Re: Check received after Charged Off
« Reply #6 on: July 09, 2012, 09:28:35 AM »
Wes, I know a bunch of people who got recovery payments a few weeks back. LC may pay those out quarterly.