A loan becomes “charged off” when there is no longer a reasonable expectation of further payments. Charge off typically occurs when a loan is 120 days or more past due. Learn more about the difference between “charge off” and “default”.
 
LendingClub may sell charged-off loans to a third party. In the event that a charged-off loan is sold to a third party or funds are recovered on a previously charged off loan, investors will receive a pro rata share of the sales proceeds or recovery amount, respectively, less any fees. In general, recoveries on previously charged-off loans are infrequent. 
 
Learn more about the different loan statuses.

Learn more about historic loan performance on the LendingClub platform.