When a loan has a partial charged-off amount should that amount still be included in the current balance? Should the charged-off amount show in the balance on the customer's past due notice?
Part of this answer lies in what the lender's system is capable of. If the charged-off amount is not forgiven, the borrower still owes it. If it isn't included in the balance, the borrower needs to understand that the charge off process was done and that amount is still owed.
Charging off an amount is an accounting exercise that says the money is not supported by a strong loan. It in no way erases the debt.
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Part of this answer lies in what the lender's system is capable of. If the charged-off amount is not forgiven, the borrower still owes it. If it isn't included in the balance, the borrower needs to understand that the charge off process was done and that amount is still owed. 