RETAIL provides robust charge-off processing features. A charge-off indicates that a portion of the receivable balance of the loan has been determined to be uncollectible. All or a portion of the loan asset may be charged off. Through the RETAIL charge-off interface, a loan charged off is closed or partially reduced on the performing loan system, and transferred to the charge-off system. The appropriate general ledger entries to close or partially reduce the loan are automatically generated on the active loan system and entries to open the loan are automatically generated on the charge-off system.

Within the RETAIL system charged-off loans are tracked separately from active loans.

If more detailed recovery processing is desired, the charge-off information in RETAIL can be interfaced to RECOVERY through the existing Unified Charge-Off (UCO) interface.

For charged-off loans maintained on RETAIL, the system has the capability to use an entirely separate set of processing options for charged-off loans versus active loans, providing maximum flexibility for the lending organization.

A full or partial charge-off may be reversed. The system will restore the active system loan as it existed before the charge-off transaction was processed.

To provide more detailed information to the user and to accommodate reporting needs, the charge-off transaction amount reduces the Net Asset Value, but does not reduce the Customer Facing Balance.

Charge-off statistics are maintained in the yield database. The statistics are the number of loans and principal amount charged off for the current month, prior month, and year-to-date.

Charged-off loans are included in the credit bureau interface.

RETAIL provides robust reporting options, including the following:

• Charge-off Today
• Full Charge-offs
• Repo/Charge-off Report
• Charge-off Interface Detail and Control
• Past due loan report (partially charged-off loans only)