Write Off Loan

These steps explain how to write off a loan.

  • Once you complete the steps below, the Inquiry screen will show that the loan is written off.  

  • In the detail of the loan, the category will be Write Off Loans.

  • Instead of the Review Date, you will see the written-off date in the Written off field.

  • After the steps below are completed, a snapshot of the loan write-off data can be viewed on the Written 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.

  4. Click Update on the Write Off or Charge Off Loan Account screen if you need to edit the collateral value.

    • Start at step 6 of the instructions to update loan collateral.

    • After following the steps to update the collateral, click the up arrow on the Collateral Item Summary screen to return to the Write Off or Charge Off Loan Account screen.

  5. On the bottom of the Write Off or Charge Off Loan Account screen, in the field that asks, Is this debt still collectible?, select Yes, I want to write off the loan.

  6. Click the forward arrow.

  7. Enter a reason code in the Reason for write off field on the Write Off Loan Account screen.

  8. In the Write off approved by field, enter the employee ID of the staff member who approved the write off.

  9. Leave the Report to credit bureau box checked.

    • 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.

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

    • 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.

  11. Click Write Off Loan.

  12. Click Add/Update to confirm.

    • If the loan is a variable rate loan you will need to click Add/Update twice, once for the variable rate data and again for the write-off confirmation.

    • If the Add additional comments to tracker note box was checked on the Write 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 written-off loans.