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.
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Performing these steps will charge off the NSF balance to the proper G/L and close the account.
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IRA and HSA accounts cannot be charged off in this manner.
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A new miscellaneous posting code must be configured for this process. Learn More.
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Launch Tool #201 Charge Off Savings/Checking Accounts.
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Enter the account base and checking/savings suffix on the Charge Off Savings/Checking Acct pop-up.
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Click the forward arrow.
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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.
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Leave the CU contact opt out box checked to exclude members from credit union-generated emails and marketing communications.
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Click the lookup button beside the Reason code field and select the appropriate reason code for the account closing.
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Click the lookup button beside the Misc. posting code field and select the charge off code corresponding to the account being charged off.
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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.
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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.
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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.
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The Transaction description field will be pre-populated with a description of Account Charged Off.
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This field can be edited as needed.
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In the Secondary transaction description field, enter any additional information as needed.
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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.
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Click Post & Close Account.
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Click Add/Update in the Confirm pop-up.
Learn More
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Learn more about managing NSF activity. |