Dormancy and Escheat Configuration

Description

Enter the number of months of inactivity after which the membership should be declared dormant.  For example, if a membership should be considered dormant after 13 months of no activity on any of the accounts within that membership, enter 13 here.

Enter the number of months of inactivity after which the membership is flagged with an escheat status of “Y.”  For example, if your state regulations require you to begin escheatment after 5 years of inactivity, enter 60 here.

• Refer to the Dormancy and Escheat Monitoring booklet for more details on escheat monitoring.

Check this box to generate a notice for members when they become dormant.

NOTE: Form must be configured before this can be activated. Refer to the Dormancy and Escheat Monitoring booklet for more information.

Check this box to generate a notice for members when they become dormant.

NOTE: Form must be configured before this can be activated. Refer to the Dormancy and Escheat Monitoring booklet for more information.

This can be used to automatically set a freeze indicator for all accounts under a membership when the membership is declared dormant.  Use one of the following freeze indicators:

• 0  - All transactions allowed (no freeze)

• 1  - Withdrawals and disbursements not allowed

• 2  - Deposits and payments not allowed

• 3  - No activity allowed

Select a "number of month" (see note below) a member must be dormant to appear on the DIWARN file.  For example, if you select 3 months, any member who will be dormant at any time during the next three months will appear on this file.

• As a further example, if you would like to see members who will go dormant in September and it is August, enter a 2 in this field.

Use the DIWARN file to alert members that their accounts are about to go dormant.  During EOD processing on the first day of the month, the system reviews accounts that would be going dormant and adds them (account base only) to the DIWARN file in your credit union’s QUERYxx library. 

• Note:  Since this is done during EOD, this file will be available starting on the 2nd day of the month.

This file can be used with Member Connect features to generate mailing labels or to send emails to these members before they actually become dormant.  Or use the List Generator/Database feature to produce a file of names and addresses that could be used to create mailing labels for sending notifications to members.

• Note:  Since the member can in effect be in this file more than one month, depending on your configuration, the member may receive more than one notification.

Check this box to generate warning notices for members who are added to the dormancy predictor file.

NOTE: Form must be configured before this can be activated. Refer to the Dormancy and Escheat Monitoring booklet for more information.

Dormancy Exclusions

The optional features in this section let you avoid declaring a membership dormant under special circumstances.  These conditions are OR conditions, meaning that members are waived from dormancy if one of the dormancy waiver conditions are met.

If you wish to prevent a membership from being declared dormant if the member has any of the OTB/Plastic products, check any that apply.  For example, many credit unions do not declare members dormant as long as they have a credit union credit card. (Remember that you could simply waive dormancy fees for members with OTB accounts, while still declaring them dormant for tracking purposes.  See “Fee Waivers” below.)

(Remember that in this context the Loan and Savings checkboxes refer to OTB loan and savings products, not regular CU*BASE loans and share accounts.)  

• NOTE ON OTB CREDIT CARDS: Check the "Credit card" box to exclude members with OTB credit cards.  Do not check the "OTB loan acct" check box.

• When this feature is first activated for one or more OTB types, any existing dormant members that are suspended from dormancy because of this exclusion will appear on your daily “Accounts Suspended from Dormancy” report (PDRMNS). Refer to the Dormancy and Escheat Monitoring booklet for more details.

SPECIAL NOTE:  CREDIT CARD RECORDS MARKED AS “HOT CARD” Members will be excluded/suspended from dormancy even if the only OTB record the member has is a credit card marked as “hot card.”  If your credit card vendor periodically purges old, inactive cards, this should not be a problem.  If not, your credit union should set up a procedure to regularly clean up old card records so that accounts are declared dormant as expected.

If you wish to prevent a membership from being declared dormant if anyone else in that member’s household has recent activity, check this flag. For example, if a husband and wife are in the same Household, but only the wife’s account is used regularly, this flag would prevent the husband’s account from being declared dormant because of activity on the wife’s accounts.

• When this feature is first activated, any existing dormant members that are suspended from dormancy because of this exclusion will appear on your daily “Accounts Suspended from Dormancy” report (PDRMNS). Refer to the Dormancy and Escheat Monitoring booklet for more details.

If you wish to prevent a membership from being declared dormant if there is activity in another membership with the same SSN, check this flag. That way if only one of the memberships is actually used regularly, any others owned by that same member would not be declared dormant.

• When this feature is first activated, any existing dormant members that are suspended from dormancy because of this exclusion will appear on your daily “Accounts Suspended from Dormancy” report (PDRMNS). Refer to the Dormancy and Escheat Monitoring booklet for more details.

Service Charges

These fields let you set parameters for periodic fees to be assessed to dormant members (fees are not charged to members whose dormancy status has been suspended).

If you wish to assess a periodic fee to memberships at normal dormancy status, check this box and use the following fields to set the fee parameters.

If checked (it will be by default), then allow the fee to take the 000 account below the par value but not less than zero. This means that a partial fee is allowed. If unchecked, then the fee will not take the account below par.

Enter the fee amount to be assessed.  For example, if you wish to set a fee of $1.00 per month, enter 100 here and choose a Frequency of Monthly. 

Fees will be taken from share accounts according to the priorities you set using Priority (F2).  

Enter the income G/L account to which fee income should be booked.

Use this to indicate how often dormancy fees should be taken from the member’s account.  Fees are assessed during end-of-day processing.

Annually (A) -  once every 12 months on the last day of December

Monthly (M) -  on the last day of every month

Quarterly (Q) - once every 3 months on the last day of March, June, September and December

Enter a description to be used when the fee is taken from the member’s account.

Check this flag if fees should not be assessed from IRA account types.  Leave the flag unchecked if you wish to allow fees to be taken from any IRA account types specified in the Fee Priority sequence.  

Fee Waivers

These fields are used to set the conditions under which dormant memberships will not be assessed a fee.

Enter an age.  Any member below this age will NOT incur fees for dormancy.  If the field is set to blank (zero), all ages below the High age will be charged. Applies to individual member types only, not organizations.

Enter an age.  Any member above this age will NOT incur fees for dormancy.  If the field is set to 999, all ages above the Low age will be charged. Applies to individual member types only, not organizations.

Enter a dollar amount.  Any members whose aggregate end-of-month savings balance is above this amount will not incur fees for dormancy.  To charge fees regardless of the aggregate savings, enter 999999999.

If you wish to waive the dormancy fee for members who have certain types of accounts or cards, place a check mark in one or more of these fields.

• ATM card - Waiver for ATM card. For online ATM card, card must be in active status (not, for example hot carded) for fee to be waived.  For Off Trial Balance (OTB) ATM card, waives if a card is present, regardless of status.

• Debit card - Waiver for debit card. For online debit card, card must be in active status (not, for example hot carded) for fee to be waived.  For Off Trial Balance (OTB) debit card, waives if a card is present, regardless of status.

• Credit card - Waiver of fee for credit cards.  For online credit card, the loan must have a Process Type of V (credit card) with a status of Active (A) and not be written off (WRTOFF of 0) for fee to be waived.  For Off Trial Balance (OTB) credit card, waives if a card is present, regardless of status or balance.

• OTB savings acct - Waives fee if member has Off Trial Balance (OTB) savings account, regardless of status or balance.

• OTB loan acct - Waives fee if member has Off Trial Balance (OTB) loan account, regardless of status or balance. 

For credit unions that use OTB cards and accounts: This area is used to waive fees for members who have any OTB/Plastics products.  If a record of this type is found in the Plastics/OTB file, the member will not be charged a dormancy fee.  Leave the fields unchecked to assess fees regardless of OTB participation,  (Remember that in this context the Loan and Savings checkboxes refer to OTB loan and savings products, not regular CU*BASE loans and share accounts.)

This is separate from the OTB fields in the “Dormancy Exclusions” section.  If dormancy is already being excluded due to OTB products, these fee waivers are not necessary.  These are designed for credit unions that still wish to declare the member dormant for tracking purposes, but just don’t want to charge the fee if the member has, for example, a credit card.

Description

Use this to set the sequence of share account types to be used when assessing dormancy fees. 

Use this to delete all dormancy monitoring parameters for this corporation and return to the previous screen.  BE CAREFUL:  There is no confirmation for this feature.