Our finance receivables consist of personal loans, which are non-revolving, with a fixed-rate, fixed terms generally between three and six years, and are secured by automobiles, other titled collateral, or are unsecured.


(dollars in millions)	September 30, 2020		December 31, 2019

Gross receivables *	$	17,606	$	18,195
Unearned points and fees	(224)		(242)
Accrued finance charges	290		289
Deferred origination costs	145		147
Total	$	17,817	$	18,389

•Finance receivables purchased as a performing receivable — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase to reflect the finance receivable balance at its initial fair value;

•Purchased credit impaired finance receivables — gross receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts established prior to the adoption of ASU 2016-13; and

•Purchased credit deteriorated finance receivables — gross receivables equal the UPB and any remaining unearned discount established at the time of the adoption of ASU 2016-13 on January 1, 2020.

We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio. When finance receivables are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and we transfer collection of these accounts to our centralized operations.

At 90 days or more contractually past due, we consider our finance receivables to be nonperforming. We stop accruing finance charges and reverse finance charges previously accrued on nonperforming loans. We reversed net accrued finance charges of $16 million and $66 million during the three and nine months ended September 30, 2020, respectively. Finance charges recognized from the contractual interest portion of payments received on nonaccrual finance receivables totaled $3 million and $12 million during the three and nine months ended September 30, 2020, respectively. All loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses.

The following is a summary of our personal loans held for investment by the year of origination and number of days delinquent, our key credit quality indicator, at September 30, 2020:


(dollars in millions)	2020		2019		2018		2017		2016		Prior		Total

Performing
Current	$	6,504	$	6,940	$	2,534	$	844	$	251	$	132	$	17,205
30-59 days past due	36		103		45		19		7		5		215
60-89 days past due	20		66		28		11		4		2		131
Total performing	6,560		7,109		2,607		874		262		139		17,551
Nonperforming (Nonaccrual)
90-179 days past due	26		133		61		23		9		6		258
180 days or more past due	—		5		2		1		—		—		8
Total nonperforming	26		138		63		24		9		6		266
Total	$	6,586	$	7,247	$	2,670	$	898	$	271	$	145	$	17,817

The following is a summary of our personal loans held for investment by number of days delinquent at December 31, 2019, which is prior to the adoption of ASU 2016-13 on January 1, 2020 and continues to be reported under ASC 310, Receivables:


(dollars in millions)	Total

Performing
Current	$	17,550
30-59 days past due	272
60-89 days past due	181
Total performing	18,003
Nonperforming
90-179 days past due	377
180 days or more past due	9
Total nonperforming	386
Total	$	18,389

ASU 2016-13 superseded the accounting for purchased credit impaired finance receivables with purchase credit deteriorated finance receivables. As a result, we converted all purchased credit impaired finance receivables to purchased credit deteriorated finance receivables in accordance with ASC Topic 326, which resulted in the gross-up of net finance receivables and allowance for finance receivable losses of $15 million on January 1, 2020. Due to the adoption of ASU 2016-13, the following disclosures related to purchase credit impaired finance receivables are no longer applicable for reporting periods beginning in 2020.

We previously reported the carrying amount of our purchased credit impaired personal loans in net finance receivables, less allowance for finance receivable losses, and our purchased credit impaired real estate loans in finance receivables held for sale as discussed below.

At December 31, 2019, finance receivables held for sale, reported in “Other assets,” totaled $64 million, which include purchased credit impaired real estate loans, as well as TDR real estate loans. See Note 6 for further information on our finance receivables held for sale.


(dollars in millions)	December 31, 2019

Personal Loans
Carrying amount, net of allowance	$	40
Outstanding balance (a)	74
Allowance for purchased credit impaired finance receivable losses (b)	—

Real Estate Loans - Held for Sale
Carrying amount	$	19
Outstanding balance (a)	35

(b) The allowance for purchased credit impaired finance receivable losses reflects the carrying value of the purchased credit impaired loans held for investment exceeding the present value of the expected cash flows. As indicated above, no allowance was required as of December 31, 2019.


(dollars in millions)	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019

Personal Loans
Balance at beginning of period	$	46	$	39
Accretion	(6)		(15)
Reclassifications from nonaccretable difference *	—		16
Balance at end of period	$	40	$	40







Real Estate Loans - Held for Sale
Balance at beginning of period	$	23	$	27
Accretion	(1)		(2)

Transfer due to finance receivables sold	—		(3)
Balance at end of period	$	22	$	22

* Reclassifications from nonaccretable difference represents the increases in accretable yield resulting from higher estimated undiscounted cash flows.


(dollars in millions)	September 30, 2020		December 31, 2019

Personal Loans
TDR gross receivables (a)	$	699	$	655
TDR net receivables (b)	701		658
Allowance for TDR finance receivable losses	321		272

Real Estate Loans - Held for Sale
TDR gross receivables (a)	$	49	$	52
TDR net receivables (b)	49		53

(a) TDR gross receivables — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase if previously purchased as a performing receivable.

(b) TDR net receivables — TDR gross receivables net of unearned points and fees, accrued finance charges, and deferred origination costs.

TDR average net receivables and finance charges recognized on TDR finance receivables for our personal loans that are held for investment and our real estate loans that are held for sale were as follows:


(dollars in millions)	Personal Loans		Real Estate Loans		Total

Three Months Ended September 30, 2020
TDR average net receivables	$	701	$	49	$	750
TDR finance charges recognized	13		1		14

Three Months Ended September 30, 2019
TDR average net receivables	$	571	$	55	$	626
TDR finance charges recognized	11		1		12

Nine Months Ended September 30, 2020
TDR average net receivables	$	692	$	51	$	743
TDR finance charges recognized	38		2		40

Nine Months Ended September 30, 2019
TDR average net receivables	$	525	$	59	$	584
TDR finance charges recognized	35		2		37


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in millions)	2020		2019		2020		2019

Personal Loans
Pre-modification TDR net finance receivables	$	105	$	129	$	392	$	373
Post-modification TDR net finance receivables:
Rate reduction	67		86		242		257
Other *	38		43		150		116
Total post-modification TDR net finance receivables	$	105	$	129	$	392	$	373
Number of TDR accounts	13,581		18,545		52,780		55,358

* “Other” modifications primarily include potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms.

New volume of TDR finance receivables held for sale are not included in the table above as they were immaterial for the three and nine months ended September 30, 2020 and 2019.

Personal loans held for investment that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) are reflected in the following table.


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in millions)	2020		2019		2020		2019


Personal Loans
TDR net finance receivables *	$	20	$	27	$	77	$	66
Number of TDR accounts	2,947		4,202		11,286		10,298

Real estate loans held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were immaterial for the three and nine months ended September 30, 2020 and 2019.