LTerminal Outcomes

    Payment History Profile Code L: Charge-Off

    Payment History Profile Code L means "Charge-Off". You charged the account off in that month, writing the balance off as a loss on your own books. L is the most severe character in the set and the one the no-improvement rule is built around. It is reported in Payment History Profile (Field 18) of the Base Segment, 24 characters at position 112.

    Specification

    CodeL
    MeaningCharge-Off
    FieldPayment History Profile (Field 18)
    RecordBase Segment
    Length / position24 chars · 112135
    CategoryTerminal Outcomes
    CRRG referenceCRRG Base Segment field definition, Payment History Profile

    What Payment History Profile Code L means

    • Charge-off is an accounting decision you make, not a day count that happens automatically. Report L in the month you actually charged the balance off.
    • L does not close the debt. A charged-off account can still be collected, sold, or paid, and the tradeline continues to report while it is on file.
    • The no-improvement rule is specific to this character: once L appears, the history cannot show improvement behind it. Payments received after charge-off change the balance and the status, they do not turn the account back into a current one.
    • L is NOT the same as G. Charge-off is your accounting treatment; collection is a servicing posture. An account can be one, the other, both, or neither.
    • L does NOT restart the reporting clock. The seven-year period runs from the Date of First Delinquency that preceded the charge-off, and moving that date forward to the charge-off month is exactly the re-ageing defect furnishers are warned about.

    When to report L

    • 1A card issuer charges off a revolving account at 180 days past due and reports L for that month.
    • 2A credit union charges off the deficiency balance remaining after an auto repossession was liquidated.
    • 3A personal-loan lender charges off an unsecured loan after recovery efforts failed, then continues reporting the balance while it is worked.
    • 4A lender charges off an account and later sells it, so its own tradeline reports the charge-off and the sale while the debt buyer reports its own tradeline.

    Reporting rules

    • Report L in the month of the actual charge-off, and populate the Original Charge-off Amount in the same record.
    • Do not report L in advance of the charge-off decision because the account is deeply past due. Until you charge it off, the character is 6.
    • Never allow the history to improve behind an L. If a post-charge-off payment brings the account current in your servicing system, that is a balance and status change, not a rewrite of the grid.
    • Keep the Date of First Delinquency fixed. It should be roughly six months older than the charge-off month for a portfolio that charges off at 180 days.
    • If you subsequently sell the debt, report the sale through the Account Status and the K2 segment rather than deleting your tradeline.

    Codes and fields that must agree

    A file can be structurally valid and still be wrong. These are the cross-field conditions Payment History Profile Code L has to satisfy.

    • Position 1 must match the current Payment Rating. L is one of the characters Payment Rating does publish, so an L in position 1 pairs with Payment Rating L (charge-off).
    • L in position 1 corresponds to Account Status 97 (unpaid balance reported as a loss, charge-off).
    • Original Charge-off Amount must be populated. A charge-off character with no charge-off amount is an incomplete record.
    • A Date of First Delinquency is mandatory, and it is the field that determines when the account purges. It must predate the charge-off, and it must not move.
    • The improvement rule is enforced against this character specifically: no character milder than L may appear in a position more recent than an L in the same string.

    Common errors involving L

    Vocabulary

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    Source: CRRG Base Segment field definition, Payment History Profile. Last reviewed 2026-08-25.

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    Metro 2 Payment History Profile Code L: Charge-Off