Log Charge-Off

A lender may determine it's in their best interest to charge-off an amount on a loan. Note the following when using this request:

Charge-offs are not a forgiven amount on a loan—they hold credit implications for the borrower.

A charge-off is actually logged as a credit within LoanPro for accounting purposes. Notice the payload for this request uses the Credits object.

A charge-off can be made for any amount up to the remaining loan balance. It's possible to charge off the rest of the loan or just a portion of it.

For an example of how charge-offs work within the LoanPro UI, take a look at our Charge-Offs 101 article.

Database

For information on charge-off database tables, see the following articles:

Database – Loan Chargeoff Entity (loan_chargeoff_entity)

Database – Loan Chargeoff Transaction (loan_chargeoff__transactions)

{
     "Credits": {
          "results": [
               {
                    "resetPastDue": 0,
                    "chargeOffFlag": 1,
                    "loanId": 9709,
                    "date": "2022-07-01",
                    "paymentType": 1,
                    "category": 6,
                    "amount": 100,
                    "title": "This charge-off was logged via the API."
               }
          ]
     }
}