Re: Is this right
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Posted by Paul
(216.127.82.99) on June 02, 2004 at 18:23:42:
In Reply to: Re: Is this right posted by JKelly on June 02, 2004 at 18:06:13:
The CC banks can charge off any account at any time while in default. They only MUST charge it off after a specific number of month’s past due amounts. In the scenario you described, the FDIC would allow a bank (if it wanted) to NOT charge the account off, because it was only 3 months past due on the payments. However, they could charge the account off if they wished also. They can also re-age an account back to current status if a person is willing to make up the payments as listed in the guidelines there also. Some banks are more willing to work with borrowers than others. The reason the FDIC was involved is that banks were carrying non-performing loans on their books misleading investors as to the true nature of the dead accounts. The FDIC gave them specific guidelines as to when the had to charge off an account, but there is definitely leeway here regarding the 180 days if someone is making partial payments.
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