We are probably seeing the first part of a move to implement what Doug Fuller referred to
here:
Instead, we are going to consider the loans as charged off, and keep them and continue to try to collect them as charged off debts.
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Several people have expressed concern regarding how 121+ dpd loans are reported. We are working to create a new loan status of “charged off”. Loans in this status will not have their balance “zeroed” out (so that they can still accrue interest), but they will not be eligible to revert to a “current” or “delinquent” status even if a payment is received.
Which bring me to ask something I thought about last time I read that.
Why on earth are they doing it the way they are? Why in the name of all that is holy would they continue to accumulate interest, but make it so that if a borrower should (&deity forbid) actually pay, the loan cannot revert to being current?
Also, what he did not say is how the loan balance of charged off loans would reflect in lenders' account statements. Last thing I want is for Prosper to continue showing an ever0increasing balance on a "charged-off" loan in my already fictitious account value.