"Charged off. PAYMENT 120+ past due." but a payment was made 2 months ago?

[yojoakak]

This isn't the prettiest loan, payments come in intermittently, the most recent payment was made on 8/15/12 (2.5 months ago) but it just got charged off for being 120+ days past due.

What gives?


"10/30/12 (Tuesday)    Charged off. PAYMENT 120+ past due. Collections efforts exhausted. Recovery unlikely"


"8/12/12 8/15/12 $0.86 $0.67 $0.19 $0.00 $8.16 Received - Partial Payment"


https://www.lendingclub.com/foliofn/loanPerf.action?loan_id=489477&order_id=2519471&note_id=1287249

[brycemason]

It's still past due if they didn't catch up. I wouldn't have charged it off quite yet but it's only an accounting mechanism. If more payments come in, you will get your share. I once saw a payment in full happen for a charged off loan from 2007---almost five years later.

[Peter]

Bryce is right - this is an accounting mechanism. How old a loan is depends on total payments made not when they are made. For example, if a loan is 90 days late and then a regular monthly payment is made, the loan becomes 60 days late. Then if no more payments are made in 60 more days it will be charged off.

But as Bryce points out payments do still come in on charged off loans although it doesn't happen that often.

[yojoakak]

Good point! LendingClub's "Late" calculation is really messed up.

For example, according to Lending Club all these loans (and a lot more) are WAAAAAY more than 120 days past due.

But they're not getting Charged Off. Wat's different about the loan above?

Last Payment (7/23/10)
https://www.lendingclub.com/account/loanPerf.action?loan_id=473843&order_id=2952630&note_id=1019230

Last Payment (1/7/11)
https://www.lendingclub.com/account/loanPerf.action?loan_id=459312&order_id=2808489&note_id=1094783

Last Payment (4/28/11)
https://www.lendingclub.com/account/loanPerf.action?loan_id=484249&order_id=2432472&note_id=1171258

[Peter]

Those notes are all on a Payment Plan and the borrowers are making partial payments. They are not going to charge-off a loan unless they believe it is unrecoverable.

[yojoakak]

Here's one that got Charged Off less than a month after a payment was made. It might have been on a Payment Plan, but any evidence of that has been wiped out. It even looks like the borrower kept making his reduced payments (see the Recoveries) until he figured out his loan had already been Charged Off.

11/5/13 payment $0.53
11/22/13 (Friday)   Charged off. PAYMENT 120+ past due. Collections efforts exhausted. Recovery unlikely

https://www.lendingclub.com/account/loanPerf.action?loan_id=434797&order_id=2601851&note_id=581673

[Lovinglifestyle]

What an interesting set of data, especially since it's a 36 month loan.  Thanks for sharing!

[Thatguybil]

Here's one that got Charged Off less than a month after a payment was made. It might have been on a Payment Plan, but any evidence of that has been wiped out. It even looks like the borrower kept making his reduced payments (see the Recoveries) until he figured out his loan had already been Charged Off.

11/5/13 payment $0.53
11/22/13 (Friday)   Charged off. PAYMENT 120+ past due. Collections efforts exhausted. Recovery unlikely

https://www.lendingclub.com/account/loanPerf.action?loan_id=434797&order_id=2601851&note_id=581673

Paid 13 payments in arrow a less than 10 days after the last loan they charged it off?
That's pretty silly.

[Bohb Daishi]

Here's one that got Charged Off less than a month after a payment was made. It might have been on a Payment Plan, but any evidence of that has been wiped out. It even looks like the borrower kept making his reduced payments (see the Recoveries) until he figured out his loan had already been Charged Off.

11/5/13 payment $0.53
11/22/13 (Friday)   Charged off. PAYMENT 120+ past due. Collections efforts exhausted. Recovery unlikely

https://www.lendingclub.com/account/loanPerf.action?loan_id=434797&order_id=2601851&note_id=581673

Double-check your recoveries. I noticed that the vast majority of them do not show up on the Loan Performance page; you need to search for them as "miscellaneous credits" in the Account Activity for the specific LoanID. The whole process is a total pain in the ass.

[yojoakak]

Double-check your recoveries. I noticed that the vast majority of them do not show up on the Loan Performance page; you need to search for them as "miscellaneous credits" in the Account Activity for the specific LoanID. The whole process is a total pain in the ass.

Nothing in my Account Activity for this loan after 11/5/13.

I've got one "Adjustment" / "Post default/charge-off adjustment" entry. It doesn't include a loan id, but it's got a different date  and amount.