# Charge off, update details, and reverse charge-off

Charging off a loan writes it off as bad debt. This is typically done after a borrower has been past due for an extended period (commonly 120–180 days) or in specific circumstances such as bankruptcy. Peach reports charged-off loans to credit bureaus based on the reason you select, so choose the reason carefully. If the charge-off was applied in error, you can reverse it.

**Availability:** All clients
**Required permissions:** `loan:chargeoff` (to charge off); `loan:update` (to update details); `loan:chargeoff.reverse` (to reverse)
**Loan status:** Charge off requires `active` or `accelerated`; Update and Reverse require `chargedOff`
**Loan types:** All

## Before you begin

- Charging off a loan negatively affects the borrower's credit history and credit score. Verify that the charge-off is appropriate before proceeding.
- Loans are typically charged off automatically by the system after a configurable number of days in overdue status. Manual charge-off is for cases that require earlier action, such as an approved bankruptcy.
- A charged-off loan can still receive payments. Use the Manage Payments tool to handle transactions on charged-off loans.


## Charge off a loan

1. From the agent-view Borrower Portal, open the loan and select **Loan options** > **Charge off**.
2. Review the current loan balance displayed on the form.
3. Enter an **Effective date** for the charge-off. By default this is set to today.
4. Select a **Charge off reason** from the dropdown.
5. Optionally select **Send notice to borrower** to email the borrower.
6. If your company requires a Case ID, select a case from the **Case ID** dropdown. See [Global behaviors — Case ID requirement](/servicing-operations/agent-only-tools/agent-tools-overview#case-id-requirement).
7. Select **Charge off**.


The loan status changes to `chargedOff`. The charge-off appears in the borrower's Activity view. The system reports the charge-off to credit bureaus according to the reason you selected.

### Charge-off field reference

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Loan balance** | The current outstanding balance of the loan. | — | Read-only display |
| **Effective date** | The date the charge-off takes effect. | Yes | Date (default: today) |
| **Charge off reason** | The reason for the charge-off. The system uses this for credit bureau reporting. | Yes | Select: Term, Fraudulent, Bankruptcy, Legal |
| **Send notice to borrower** | Sends an email to the borrower about the charge-off. | No | Checkbox |
| **Case ID** | The case associated with this action. | Conditional | Select from open cases. Required when `forceCaseIdOnAgentActions` is enabled. |


## Update charged-off details

After a loan has been charged off, you can change the charge-off reason. Use this if the original reason was incorrect or if circumstances have changed.

1. From the agent-view Borrower Portal, open the charged-off loan and select **Loan options** > **Update charged off details**.
2. Select a new **Charged off reason** from the dropdown.
3. Select **Update**.


### Update details field reference

| Field | Description | Required | Values / Format |
|  --- | --- | --- | --- |
| **Charged off reason** | The updated reason for the charge-off. | No | Select from charge-off reason options |


## Reverse charge-off

If a loan was charged off by mistake, you can reverse the charge-off to return the loan to its previous status.

1. From the agent-view Borrower Portal, open the charged-off loan and select **Loan options** > **Reverse charge off**.
2. Select **Reverse charge off**.


The loan status changes back to its previous state.

**Important:** If you reverse the charge-off and the loan has an overdue balance, the system may automatically charge off the loan again if the overdue balance is not resolved the same day.

## Related pages

- [Agent-only loan tools](/servicing-operations/agent-only-tools/agent-tools-overview)
- [Accelerate and reverse acceleration](/servicing-operations/agent-only-tools/agent-tools-accelerate)
- [Manage credit reporting](/servicing-operations/agent-only-tools/agent-tools-credit-reporting)