62. Question: How should an account be reported when merchandise has been repossessed?
For reporting an account when merchandise has been repossessed use the following guidelines:
Account Status Code 96 should be reported, which specifies “Merchandise was repossessed; there may be a balance due”. Report the outstanding balance amount in the Current Balance field and the amount deemed to be past due by the creditor in the Amount Past Due field. Continue reporting Account Status 96 until one of the following scenarios apply:
Scenarios:
Note: If a repayment plan is created for this remaining balance, report the new Scheduled Monthly Payment Amount (SMPA). Otherwise, report SMPA = zero.
If the remaining balance is not paid and is subsequently charged off, report Account Status Code 97 (Unpaid balance reported as a loss – charge-off). In subsequent reporting periods, follow FAQ 34. For credit reporting purposes, Account Status 97 should not be reported until after the sale of the merchandise and the consumer has been given an opportunity to make payments on the remaining balance.
Account Status Code 96 should be reported, which specifies “Merchandise was repossessed; there may be a balance due”. Report the outstanding balance amount in the Current Balance field and the amount deemed to be past due by the creditor in the Amount Past Due field. Continue reporting Account Status 96 until one of the following scenarios apply:
Scenarios:
- If the consumer reinstates the loan by bringing account payments current, report Account Status 11 (current) and continue reporting the account normally going forward.
- If the consumer redeems the merchandise by paying the account balance in full, report Account Status 63 (Account paid in full, was a repossession) and a Current Balance and Amount Past Due = zero.
- If the consumer is not responsible for the remaining balance on the account after the sale of the merchandise or there is no deficiency balance, report Account Status 96 with a Current Balance and Amount Past Due of zero. Report the Date Closed as the date the merchandise was repossessed.
- If the consumer is held responsible for the remaining balance on the account after the sale of the merchandise, continue reporting Account Status 96. Report the remaining balance in the Current Balance and Amount Past Due fields, and as payments are made by the consumer, report a declining balance in both fields. When the consumer pays the outstanding balance in full, report Account Status Code 63, which specifies “Account paid in full, was a repossession”. The Current Balance and Amount Past Due should be zero and the Date Closed should be the date the account was paid in full.
Note: If a repayment plan is created for this remaining balance, report the new Scheduled Monthly Payment Amount (SMPA). Otherwise, report SMPA = zero.
If the remaining balance is not paid and is subsequently charged off, report Account Status Code 97 (Unpaid balance reported as a loss – charge-off). In subsequent reporting periods, follow FAQ 34. For credit reporting purposes, Account Status 97 should not be reported until after the sale of the merchandise and the consumer has been given an opportunity to make payments on the remaining balance.
