Finance

A Wyoming lender who 'charges off' a bad loan has:

ASold the loan to a collection agency
BWritten the loan off as a loss on their books (though the debt may still be owed)✓ Correct
CForgiven the debt completely
DTransferred the property to the borrower free and clear

Explanation

When a lender charges off a loan, they write it off as a loss on their financial statements—acknowledging the loan is unlikely to be fully collected. However, the underlying debt may still legally exist, and the lender (or a debt buyer who purchases the charged-off loan) may still pursue collection.

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