A loan becomes “charged off” when there is no longer a reasonable expectation of further payments. Charge off typically occurs when a loan is no later than 150 days past due (i.e. no later than 30 days after the “default” status is reached). 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.