Charge off a loan

Charge-off recognizes that a receivable meets the lender’s charge-off policy. It is an accounting classification with operational consequences; it does not by itself prove debt forgiveness, satisfaction, or contract termination.

Flow

When maker-checker is not configured for the command, it posts directly; the governance record is written either way.

Execute

The charge-off is the governed native command charge-off. A human call carries LendEasy-Case naming an open case when case management is enabled; without it the call is rejected before execution.

curl -X POST "$BASE/v1/loans/7204/transactions?command=charge-off" \
  -H "Authorization: Bearer $TOKEN" \
  -H "LendEasy-Tenant: demo-lender" \
  -H "LendEasy-Case: case_HBR_LOSS_18" \
  -H "Content-Type: application/json" \
  -H "Idempotency-Key: hbr-chargeoff-2028-01-31" \
  -d '{
    "transactionDate": "2028-01-31",
    "note": "Monthly charge-off review; contractual delinquency threshold met.",
    "dateFormat": "yyyy-MM-dd",
    "locale": "en"
  }'

{
  "officeId": 1,
  "clientId": 412,
  "loanId": 7204,
  "resourceId": 30465,
  "changes": {
    "transactionDate": "2028-01-31"
  }
}

The product determines eligible delinquency facts, component accounting, future interest and fee treatment, permitted recovery actions, statements, credit reporting integration, and whether autopay cancels. The request cannot override those settings ad hoc.

Before executing

Read the loan and its summary for current principal, interest, fees, penalties, credits, and payments in flight. A pending covering payment or an unresolved bankruptcy or dispute restriction is a reason to hold the command in the case—executing anyway either fails validation or creates review work.

After posting

• The loan reads as charged off with the effective date; the charge-off transaction carries the component split.
• Ordinary repayment paths are replaced by recovery-payment handling.
• Autopay stops or enters review under product policy.
• Accrual and charge assessment follow post-charge-off settings.
• Collections and communications still pass restriction and contact rules.
• Balance reads distinguish ordinary from recoverable components.

The command does not erase the schedule or transaction history.

Recovery and closure

Recovery payments link to the charge-off and use separate allocation and accounting. A full recovery can satisfy the remaining obligation, but status transition and closure follow explicit policy; the platform does not automatically undo charge-off to improve portfolio metrics.

Undo

POST /v1/loans/7204/transactions?command=undo-charge-off reverses the accounting classification and replays later activity under ordinary rules. It requires the original charge-off to remain reversible and can be blocked by recoveries, write-offs, closed periods, or external reporting dependencies. It is its own governed command—new case context, new governance record, and its own maker-checker configuration.