Charge-Offs update
November 6th, 2008 | News & UpdatesProsper recently charged off numerous loans. These loans were not sold to a debt buyer and are technically still in collections. However, they are effectively defaulted so we’ll categorize these loans under the Defaulted (NAT/Charge-Off) category.
Non-update related: Fred93’s blog. Always found his posts to be very insightful so hopefully by mentioning it here, it will get him some more readers. :)
November 6th, 2008 at 3:35 pm
My largest loan was moved to charge-off and was fully paid this week (loan #3858, listing #45350), much to my great delight. While I don’t expect this to happen very often, just a comment on the “charge-off equals zero” assumption.
November 6th, 2008 at 5:39 pm
abraxas: Did the loan status change? i assume if it was paid off the status would flip to ‘paid’. If not I’ll take a look to make sure it’s accounted for.
November 7th, 2008 at 5:05 am
“Charge-offs” are like a Roach Motel. Once the loan checks in, it can never check out. The loan in question still says “Charge Off/In Collections” even though the principal balance is “0″. Presumably it will switch to “Charge Off/Paid in Full” next week sometime, according to Prosper http://www.prosper.com/help/topics/lender-debt_sales.aspx. If it magically switches out of the “Charge-Off” area and into the normal “Paid” group, I’ll update here.
November 7th, 2008 at 12:47 pm
abraxas: If you don’t mind, can you tell me which listing this occurred on? I think it’s already accounted for (principal repaid) but I’m not 100% sure so I would love to check your specific case out.
November 9th, 2008 at 2:52 am
Fred93 seems to be a pretty smart guy, and the most successful of the “big” lenders. Did anyone ever contact him directly? He might be pretty interesting to talk to.
November 10th, 2008 at 5:39 pm
Re: “which listing this occurred on”: The loan and listing numbers are in the first message.
On my side of things, there is a clear division between a normal loan and a charge off. I’m not sure what your data look like, so hard to guess, but you can try to scale things based on my numbers below for this loan:
Loan balance: $0.00
Loan status: Charge-off/In collections
Principal loaned: $555.55 @ 28.00%
Payments received: $399.70
Charge-off date: Oct-28-2008
Charge-off balance: $372.65
Recoveries Received: $379.61
January 2nd, 2009 at 10:14 am
greatings…
thanks…