Charge Off Loan

These steps explain how to charge off a loan (close the loan and bring it to a zero balance).

• After the steps below are completed, a snapshot of the loan charge-off data can be viewed on the Charged Off Loan History Dashboard.

1. Launch Tool #1006 Write Off/Charge Off Loans.

2. Enter the loan account base and suffix on the Write Off or Charge Off Loan Account pop-up.

3. Click the forward arrow.

   • If the collateral value needs updating, click Update on the Write Off or Charge Off Loan Account screen and follow the steps to update the loan collateral (begin at step 6). When finished, click the up arrow to return to the Write Off or Charge Off Loan Account screen.

4. On the bottom of the Write Off or Charge Off Loan Account screen, in the field that asks 'Is this debt still collectible?', select 'No, I want to charge off the loan' & close the account.

5. Click the forward arrow.

6. On the Charge Off Loan Account screen in the Reason for charge off field, enter a reason code for the charge off.

7. In the Charge off approved by field, enter the employee ID of the staff member who approved the charge off.

8. In the Acct closed reason code field, enter a reason code that indicates why the member is closing their loan account.

9. Leave the Report to credit bureau box checked.

10. Depending on your credit union procedures, you may also need to update the Metro 2 Code Indicators for the four credit bureau reporting fields under this checkbox.

11. Depending on your credit union procedures, you may need to also do one or more of the following on this screen:

    • Change the Statement mail group code.

    • Change the 3rd-party marketing opt out status.

    • Change the CU contact opt out status.

    • Update the dates in the following fields:

      1. Approved at board mtg on

      2. Bankruptcy date

      3. Judgement obtained on

      4. Collateral liquidation date

    • Update the Delinquency fine control code.

    • Update the Freeze code.

    • Check the box labeled Add additional comments to tracker note.

12. Click Close Loan.

13. Click Add/Update in the Confirm pop-up to confirm the charge off.

14. In the Close Other Share Type Accounts pop-up, enter a reason code that indicates why the member is closing their loan account.

15. Click the forward arrow.

16. Click Close on the Close Accounts screen to confirm the closing of the loan account.

17. Click Continue on the Confirm Continue pop-up to reconfirm the closing of the loan account.

    • If the Add additional comments to tracker note box was checked on the Charge Off Loan Account screen, you will now arrive at the Member Tracker Entry screen, where you can add a personalized tracker conversation to supplement the one the system automatically generates for charged-off loans.