Charge Off Checking or Savings Account

These steps explain how to charge off a negative checking account or a negative savings account that is not the membership primary share account.

  • Performing these steps will charge off the NSF balance to the proper G/L and close the account.

  • IRA and HSA accounts cannot be charged off in this manner.

  • A new miscellaneous posting code must be configured for this process. Learn More.

  1. Launch Tool #201 Charge Off Savings/Checking Accounts.

  2. Enter the account base and checking/savings suffix on the Charge Off Savings/Checking Acct pop-up.

  3. Click the forward arrow.

  4. On the Charge Off Savings/Checking Acct screen, leave the 3rd party marketing opt out box checked to exclude members from third-party emails and marketing communications.

  5. Leave the CU contact opt out box checked to exclude members from credit union- generated emails and marketing communications.

  6. Click the lookup button beside the Reason code field and select the appropriate reason code for the account closing.

  7. Click the lookup button beside the Misc. posting code field and select the charge off code corresponding to the account being charged off.

    • If the appropriate miscellaneous posting code is not listed, enter 999. Then click the lookup button beside the field labeled If 999, G/L account and select the corresponding general ledger account.

  8. If your credit union has activated the feature to send a one-time record to the credit bureaus when charging off accounts, check the Report to Credit Bureau box to report this account.

    • Enter appropriate codes into the Credit bureau comments, Status, Consumer information indicator, Compliance condition code, and Total overdraft protection amount fields according to your credit union procedures (learn more about using these fields).

  9. The Transaction description field will be prepopulated with a description of Account Charged Off.

    • This field can be edited as needed.

  10. In the Secondary transaction description field, enter any additional information as needed.

    • Click the Comments button if you would like to leave a comment about this account for other credit union staff to view when they access the account.

  11. Click Post & Close Account.

  12. Click Add/Update in the Confirm pop-up.

Learn More

Learn more about managing NSF activity.