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Loans and Card Member Receivables
9 Months Ended
Sep. 30, 2020
Loans Notes Trade And Other Receivables Disclosure [Abstract]  
Loans and Card Member Receivables Loans and Card Member Receivables
Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables. We also extend credit to consumer and commercial customers through non-card financing products, resulting in Other loans. Reserves for reporting periods beginning after January 1, 2020 are presented using the CECL methodology, while comparative information continues to be reported in accordance with the incurred loss methodology in effect for prior periods.
Card Member loans by segment and Other loans as of September 30, 2020 and December 31, 2019 consisted of:
(Millions)20202019
Global Consumer Services Group (a)
$57,538 $73,266 
Global Commercial Services12,068 14,115 
Card Member loans69,606 87,381 
Less: Reserve for credit losses5,688 2,383 
Card Member loans, net$63,918 $84,998 
Other loans, net (b)
$3,144 $4,626 
(a)Includes approximately $25.2 billion and $32.2 billion of gross Card Member loans available to settle obligations of a consolidated variable interest entity (VIE) as of September 30, 2020 and December 31, 2019, respectively.
(b)Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $0.7 billion of gross PPP loans as of September 30, 2020. Other loans are presented net of reserves for credit losses of $370 million and $152 million as of September 30, 2020 and December 31, 2019, respectively.
Card Member receivables by segment as of September 30, 2020 and December 31, 2019 consisted of:
(Millions)20202019
Global Consumer Services Group (a)
$16,093 $22,844 
Global Commercial Services (b)
24,718 34,569 
Card Member receivables40,811 57,413 
Less: Reserve for credit losses422 619 
Card Member receivables, net$40,389 $56,794 
(a)Includes nil and $8.3 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of September 30, 2020 and December 31, 2019, respectively.
(b)Includes $4.2 billion and nil of gross Card Member receivables available to settle obligations of a consolidated VIE as of September 30, 2020 and December 31, 2019, respectively.
Card Member Loans and Receivables Aging
Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of September 30, 2020 and December 31, 2019:
2020 (Millions)Current30-59
Days
Past Due
60-89
Days
Past Due
90+
Days
Past Due
Total
Card Member Loans:
Global Consumer Services Group$56,833 $174 $141 $390 $57,538 
Global Commercial Services
Global Small Business Services11,880 30 25 77 12,012 
Global Corporate Payments (a)
(b)(b)(b) 56 
Card Member Receivables:
Global Consumer Services Group15,963 36 27 67 16,093 
Global Commercial Services
Global Small Business Services$14,171 $35 $26 $77 $14,309 
Global Corporate Payments (a)
(b)(b)(b)$67 $10,409 

2019 (Millions)Current30-59
Days
Past Due
60-89
Days
Past Due
90+
Days
Past Due
Total
Card Member Loans:
Global Consumer Services Group$72,101 $322 $253 $590 $73,266 
Global Commercial Services
Global Small Business Services13,898 56 40 85 14,079 
Global Corporate Payments (a)
(b)(b)(b) 36 
Card Member Receivables:
Global Consumer Services Group22,560 86 58 140 22,844 
Global Commercial Services
Global Small Business Services$17,113 $99 $58 $134 $17,404 
Global Corporate Payments (a)
(b)(b)(b)$136 $17,165 
(a)Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. Delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).
(b)Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.
Credit Quality Indicators for Card Member Loans and Receivables
The following tables present the key credit quality indicators as of or for the nine months ended September 30:
20202019
Net Write-Off RateNet Write-Off Rate
Principal Only(a)
Principal, Interest & Fees(a)
30+ Days Past Due as a % of Total
Principal Only(a)
Principal, Interest & Fees(a)
30+ Days Past Due as a % of Total
Card Member Loans:
Global Consumer Services Group2.7 %3.2 %1.2 %2.3 %2.8 %1.6 %
Global Small Business Services2.1 %2.4 %1.1 %1.8 %2.1 %1.3 %
Card Member Receivables:
Global Consumer Services Group2.0 %2.2 %0.8 %1.7 %1.8 %1.4 %
Global Small Business Services2.3 %2.6 %1.0 %1.9 %2.1 %1.7 %
Global Corporate Payments(b)2.2 %(c)(b)(d)(c)
(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, because we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented.
(b)Net write-off rate based on principal losses only is not available due to system constraints.
(c)For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ Days Past Billing as a % of total was 0.6% and 0.7% for the periods ended September 30, 2020 and 2019, respectively.
(d)Net loss ratio was the credit quality indicator for GCP Card Member receivables for prior periods and represents the ratio of GCP Card Member receivables write-offs, consisting of principal (resulting from authorized transactions) and fee components, less recoveries, on Card Member receivables expressed as a percentage of gross amounts billed to corporate Card Members. The net loss ratio for the nine months ended September 30, 2019 was 0.08%.

Refer to Note 3 for additional indicators, including external environmental qualitative factors, management considers in its evaluation process for reserves for credit losses.
Impaired Loans and Receivables
Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that we will be unable to collect all amounts due according to the original contractual terms of the customer agreement. We consider impaired loans and receivables to include (i) loans over 90 days past due still accruing interest, (ii) nonaccrual loans and (iii) loans and receivables modified as troubled debt restructurings (TDRs).
In instances where the customer is experiencing financial difficulty, we may modify, through various financial relief programs, loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. We have classified loans and receivables in these modification programs as TDRs and continue to classify customer accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program TDRs.”
Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is characterized as non-accrual in our TDR disclosures), (ii) placing the customer on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the customer exits the modification program. Upon entering the modification program, the customer’s ability to make future purchases is either limited, canceled, or in certain cases suspended until the customer successfully exits from the modification program. In accordance with the modification agreement with the customer, loans and/or receivables may revert back to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program.
Reserves for modifications deemed TDRs are measured individually and incorporate a discounted cash flow model. All changes in the impairment measurement are included within provisions for credit losses.
In response to the COVID-19 pandemic, the United States introduced the Coronavirus Aid, Relief, and Economic Security Act, which among other things provides financial institutions with the option to temporarily suspend (i) certain requirements under U.S. GAAP for loan modifications related to the COVID-19 pandemic that would otherwise be treated as TDRs and (ii) any determination that a loan modified as a result of the COVID-19 pandemic is a TDR (including impairment for accounting purposes). Based on the nature of our programs, we have not elected the accounting and reporting relief afforded by this guidance and continue to report modifications as TDRs.
In the first quarter of 2020, we created a Customer Pandemic Relief (CPR) program for customers who have been impacted by the COVID-19 pandemic to provide a concession in the form of payment deferrals and waivers of certain fees and interest. We assessed the CPR program and determined that eligible loan modifications were temporary in nature, for example, less than three months, and not considered TDRs. Our short-term CPR programs are no longer widely available with immaterial balances remaining in the program as of September 30, 2020.
The following tables provide additional information with respect to our impaired loans and receivables as of September 30, 2020 and December 31, 2019:
As of September 30, 2020
Accounts Classified as a TDR (c)
2020 (Millions)
Over 90 days Past Due & Accruing Interest(a)
Non-
Accruals(b)
In
Program(d)
Out of Program(e)
Total
Impaired Balance
Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group
$243 $186 $1,479 $209 $2,117 $825 
Global Commercial Services37 45 473 56 611 297 
Card Member Receivables:
Global Consumer Services Group— — 232 22 254 38 
Global Commercial Services— — 605 57 662 105 
Other Loans(f)
4 1 283 3 291 101 
Total$284 $232 $3,072 $347 $3,935 $1,366 

As of December 31, 2019
Accounts Classified as a TDR (c)
2019 (Millions)
Over 90 days Past Due & Accruing Interest(a)
Non-
Accruals(b)
In
Program(d)
Out of Program(e)
Total
Impaired Balance
Reserve for Credit Losses - TDRs
Card Member Loans:
Global Consumer Services Group
$384 $284 $500 $175 $1,343 $137 
Global Commercial Services44 54 97 38 233 22 
Card Member Receivables:
Global Consumer Services Group— — 56 16 72 
Global Commercial Services— — 109 30 139 
Total$428 $338 $762 $259 $1,787 $168 
(a)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR.
(b)Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs.
(c)Accounts classified as a TDR include $31 million and $26 million that are over 90 days past due and accruing interest and $9 million and $10 million that are non-accruals as of September 30, 2020 and December 31, 2019, respectively.
(d)In Program TDRs include accounts that are currently enrolled in a modification program.
(e)Out of Program TDRs include $256 million and $188 million of accounts that have successfully completed a modification program and $91 million and $72 million of accounts that were not in compliance with the terms of the modification programs as of September 30, 2020 and December 31, 2019, respectively.
(f)Other loans primarily represent consumer and commercial non-card financing products. Prior period balances were not significant.
Loans and Receivables Modified as TDRs
The following table provides additional information with respect to loans and receivables modified as TDRs for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended
September 30, 2020
Nine Months Ended
September 30, 2020
Number of
Accounts
(thousands)
Outstanding
Balances
(millions)(a)
Average Interest
Rate Reduction
(% Points)
Average Payment
Term Extensions
(# of Months)
Number of
Accounts
(thousands)
Outstanding
Balances
(millions)(a)
Average Interest
Rate Reduction
(% Points)
Average Payment
Term Extension
(# of Months)
Troubled Debt Restructurings:
Card Member Loans
76 $649 14 (b)216 $1,947 14 (b)
Card Member Receivables
13 231 (c)1838 1,049 (c)19
 Other Loans(d)
3 $165 3 178 $319 3 16
Total92 $1,045 262 $3,315 

Three Months Ended
September 30, 2019
Nine Months Ended
September 30, 2019
Number of
Accounts
(thousands)
Outstanding
Balances
(millions)(a)
Average Interest
Rate Reduction
(% Points)
Average Payment
Term Extensions
(# of Months)
Number of
Accounts
(thousands)
Outstanding
Balances
(millions)(a)
Average Interest
Rate Reduction
(% Points)
Average Payment
Term Extension
(# of Months)
Troubled Debt Restructurings:
Card Member Loans
21 $160 13 (b)55 $425 13 (b)
Card Member Receivables
54 (c)27144 (c)27
Total23 $214 61 $569 
(a)Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance.
(b)For Card Member loans, there have been no payment term extensions.
(c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing.
(d)Other loans primarily represent consumer and commercial non-card financing products. Prior period balances were not significant.
The following table provides information with respect to loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. For all customers that defaulted from a modification program, the probability of default is factored into the reserves for loans and receivables.
Three Months Ended
September 30, 2020
Nine Months Ended
September 30, 2020
Number of Accounts (thousands)
Aggregated Outstanding Balances Upon Default (millions)(a)
Number of
Accounts
(thousands)
Aggregated
Outstanding
Balances Upon
Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans4 $32 11 $84 
Card Member Receivables1 16 3 34 
Other Loans (b)
1 1 2 2 
Total6 $49 16 $120 

Three Months Ended
September 30, 2019
Nine Months Ended
September 30, 2019
Number of Accounts (thousands)
Aggregated Outstanding Balances Upon Default (millions)(a)
Number of
Accounts
(thousands)
Aggregated
Outstanding
Balances Upon
Default (millions)(a)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans$23 $59 
Card Member Receivables13 
Total$28 12 $72 
(a)The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables.
(b)Other loans primarily represent consumer and commercial non-card financing products. Prior period balances were not significant.