The Best Time to Recover Charge Offs May Be Long After You’ve Stopped Trying
From the Great Recession of 2008 through the last two years of the COVID-19 pandemic, millions of America’s credit union members have experienced a personal financial crisis. Regardless of the cause - whether medical emergency, divorce, prolonged unemployment or under-employment, or something else – the early stages of the 21st century have marked the highest number and dollar amount of consumer charge offs in credit union history. Even today, millions of credit union members have not fully recovered and billions of dollars in charged off loans, credit cards, lines of credit and negative share balances remain uncollected. A significant percentage of those losses have fallen out of the federal reporting statute and are now time-barred from recovery. On...