What qualifies as a new PA
A new payment arrangement (New PA) is created the first time a charged-off account agrees to a structured repayment plan after charge-off.
Required steps
- Verify identity and right party contact.
- Confirm balance and terms in writing.
- Set the first debit date no more than 14 days out.
- Document the PA in the account note with effective date.
Setting expectations
"This arrangement keeps your account out of further legal review as long as the agreed payments come through. Missed payments revert the account to active charge-off status."