Posts Tagged ‘ Charge-offs ’

As described on the September 24 site update, borrowers whose loans were 91 or more days past due on that date (and not in bankruptcy proceedings) received a notice of acceleration. The Notice of Acceleration is a warning that the loan will be accelerated in 30 days, meaning the loan will be due and payable in full. If the borrower doesn’t make a payment by the 30 day deadline, his or her loan will then be charged-off at 121 days past due.

As of today, any loans which are still 121 or more days past due will be accelerated and switched into “charge-off” status. Loans in which the borrower is in a bankruptcy proceeding will not be charged-off.

Lenders with charged-off loans will receive an email when the loan is charged-off. A charge-off loan’s details will still be accessible to lenders in their Prosper account, and any post-charge-off recoveries can be viewed on the loan detail page.

You can learn more about charge-offs on this help page.

Prosper changed the way we report most severely delinquent loans from “Defaulted” and “4+ months late” to “Charge-offs” in September.

Borrowers whose loans are 91 or more days past due (DPD) will receive a “Notice of Acceleration”. The Notice of Acceleration is a warning that their loan will be accelerated in 30 days, meaning the loan will be due and payable in full. If the borrower doesn’t make a payment by the 30 day deadline, his or her loan will then be charged-off at 121 days past due.

Please note that we have added a new loan object status of  “Charge-off” to our data export to account for a new classification of loans as described in this blog post: http://blog.prosper.com/2008/09/24/site-update-%e2%80%93-september-23-2008/

The new status will start appearing in the export file by October 24th.

Please contact APIServices@prosper.com if you have any questions.