Charge Offs – Periodic statements are not required following charge off of a loan
if the servicer will not charge any additional fees or interest on the account and,
within 30 days of the charge off or the most recent statement, the servicer
provides a notice clearly and conspicuously labeled "Suspension of Statements &
Notice of Charge Off - Retain This Copy for Your Records" that states, among
other things:
The mortgage loan has been charged off;
The servicer will no longer provide a periodic statement for each billing cycle;
The lien remains in place and the consumer remains liable for the loan and any
obligations which may include property taxes;
The balance is not being canceled or forgiven, and the consumer may be required to
pay the balance on the account in the future; and
The loan may be purchased, assigned, or transferred.
12
Charge-Offs
