Dormant Account Processing

Shares and Certificates Shares/Certificates Dormant Account Processing

Dormant Account Processing is a critical function within the FLEX system, designed to identify, manage, and process accounts that have shown no activity for a specified period. This process allows credit unions to flag dormant accounts, apply fees, and manage escheatment processes according to established parameters.

I. Overview

  • Purpose: To run a list of dormant accounts and/or flag accounts dormant based on selected credit union parameters.
  • Activity Definition:
    • Counts as Activity: Teller, ATM, ACH, auto transfers, debit card, payroll, insurance premium, interest rebate, share draft, etc.
    • Does NOT Count as Activity: Dividends and periodic fees. These do not update the last transaction date.
  • Process Flow: Users can build, save, and run various dormant account configurations. Dormant dates are not updated, and fees are not charged until the configuration is “posted.”

II. Accessing Dormant Account Processing

Dormant Account Processing is located within the FLEX Main Menu:

  • Internal Audit
    • Dormant Accounts
      • Dormant Account Processing
      • Dormant Fee Order

III. Managing Dormancy Configurations

The upper panel of the Dormant Account Processing screen displays existing dormancy configurations.

  • Adding a New Configuration: Click ADD.
  • Editing an Existing Configuration: Highlight an existing configuration and click EDIT.

A. Configuration Fields (Edit Parameters)

When adding or editing a configuration, the following parameters can be set:

  • Name: Key in a descriptive name for the configuration.
  • Filter:
    • Bad Address:
      • Blank: Bad Address is not used for dormancy consideration.
      • Exclude: Accounts with a Bad Address are excluded from dormancy.
      • Only: Accounts are flagged dormant only if they have a Bad Address and meet other criteria.
    • UDF to Check: Indicates a user-defined field in NAME User Defined Fields. If this UDF is not blank, the account will not be considered for dormancy. (e.g., for third-party cards, mortgages not on the system).
    • No Activity Range: Select a predefined period (e.g., “1 Year,” “3 Years”). This automatically populates the “Date Without Activity From/To” fields.
      • Custom Option: Allows manual entry of “Date Without Activity From/To” dates.
    • Date Without Activity From/To: System-filled dates based on “No Activity Range.” Accounts without activity within this range are considered dormant. The system prioritizes the last transaction date, then the last correspondence date.
    • Share Balance From/To: Define a balance range to include/exclude accounts. If left blank, all balances are considered.
    • Exclude Member Age <=/or >=: Define age criteria to include/exclude members. If left blank, all ages are included.
    • Excluded Types: Click Maintain to select account types to exclude from dormancy. Members with any excluded account types will not be flagged dormant.
      • Maintain Excluded Types Screen:
        • Available Types: List of all available account types.
        • Selected Types: List of account types chosen for exclusion.
        • Add All / Remove All: Buttons to move all types between lists.
        • Arrows: Buttons to move individual types.
    • Excluded Suffixes: Click Maintain to select suffixes to exclude from dormancy. Members with any excluded suffixes will not be flagged dormant.
      • Maintain Excluded Suffixes Screen: Similar functionality to “Maintain Excluded Types.”
    • Excluded Card Types: Click Maintain to select card types to exclude from dormancy. Members with any excluded card types will not be flagged dormant.
  • General Control:
    • Note: To modify default dormant configurations (greyed out), use UNLOCK DEFAULTS.
    • Freeze Funds: If checked, funds are immediately frozen in the account/suffix flagged dormant.
    • Exclude Zero Balance: If checked, zero balance accounts will not be marked dormant.
    • Exclude Co-Borrower on Active Loans: If checked, co-borrowers on active loans will not be marked dormant.
    • Exclude Active Household: If checked, additional accounts with the same address key (if active) will not be marked dormant.
    • Include Certificates in Min/Max: If checked, certificate balances are included when comparing to minimum/maximum balances (default from control file).
    • Accumulate All Share Balances in Min/Max: If checked, all share balances are accumulated before comparison to minimum/maximum balances.
    • Consider All Member Account Numbers: If checked, the dormancy program examines all of the member’s accounts; if any are not dormant, none will be marked dormant.
    • Exclude Charged Off Shares: If checked, accounts meeting dormancy criteria but having a charge-off share record will not be flagged dormant.
    • #CD Renewals Before Dormant: Enter the number of times a Certificate of Deposit (CD) can auto-renew before the account is considered dormant.
    • Escheat Date: A date for escheatment. If entered, accounts will be zeroed out and balances transferred to the specified GL account when the program runs.
    • Escheat GL Account: The General Ledger account number for escheated balances.
    • Include Joint Owner Activity: If checked, the program checks for activity from joint owners on other primary accounts. If activity exists within parameters, the account will not be marked dormant.
  • Fees:
    • Charge Fee to Sub Accounts After Minimum: If checked, fees are charged to sub-accounts after the minimum balance is reached for the base share account.
    • Fee for Entire Account: Displays the fee charged to the base share account when flagged dormant.
    • Fee GL Account: The General Ledger account number for dormant fees.
    • Fee Description: A description for the dormancy fee.
    • Flag Individual Suffix: If checked, individual suffixes can be considered dormant even if other suffixes are active. Dormancy is flagged at the suffix level.
    • Fee for Individual Suffix: If “Flag Individual Suffix” is checked, key in the fee for each dormant suffix.
    • Only Fee if Dormant Less Than: If checked, a fee is charged only if dormancy is less than the selected number of years.
  • Accounts Previously Marked Dormant:
    • Include Current Dormant Accounts: If checked, all dormant accounts/suffixes (including previously marked ones) are included in the report/update. If unchecked, only accounts flagged during the current run are included.
    • Remove Dormant Flag if No Longer Dormant: If checked, the dormant flag is removed if the account/suffix has had activity since becoming dormant. If unchecked, accounts/suffixes remain on the dormancy list regardless of recent activity.

IV. Previewing and Posting Results

A. Last Preview Results Button

  • After highlighting a configuration, click Last Preview Results to view accounts that met the criteria the last time the configuration was run but not posted. Useful for printing notices before final posting.

B. Preview Results Panel

This panel displays the results of a dormant configuration run.

  • #Accounts: Number of member accounts (or suffixes, if “Flag Individual Suffix” is enabled) meeting dormancy criteria.
  • Fee None/Fee All Toggle Button: Toggles all records to be charged a dormancy fee or not. Individual records can be changed. No fee is charged until POST is used.
  • Update None/Update All Toggle Button: Toggles all records to be flagged dormant or not. Individual records can be changed. No records are updated until POST is used.
    • Note: FEE NONE/ALL and UPDATE ALL/NONE can be used together (e.g., charge a fee without flagging dormant: FEE ALL and UPDATE NONE active).
  • Run Configuration: Displays the description of the selected dormant configuration.
  • Notice: Click NOTICE to generate Dormant Account Notices.
    • Notice Options Box: Displays the number of notices to print.
    • Note: Notice text is managed in Managerial Options. Multiple notices can be added for different configurations.
  • Worksheet: Click to generate a Dormant Account Fee Worksheet (only if fees are applicable).
  • Post: Click POST to flag accounts dormant and charge dormant fees. Configurations can be edited and re-run before posting.

C. Posting Options

The Posting Options screen appears when clicking POST. These settings are derived from Dormant Account Listing Defaults in the control file or changes in the individual configuration.

  • Remove Dormant Flag If No Longer Dormant: (Checkbox)
  • Freeze Funds: (Checkbox)
  • Flag Individual Suffix: (Checkbox)
  • Fee For Individual Suffix: (Field)
  • Fee Description: (Field)
  • Fee For Entire Account: (Field)
  • Fee GL Account: (Field)
  • OK: Click to update accounts dormant and charge fees.
  • Cancel: Click to exit without posting fees or updating dormant dates.

D. Preview Button

After highlighting a dormant configuration description, click Preview.

  • Use Original No Activity Dates: The system uses previous run configuration settings to update Preview Results.
  • Use New No Activity Dates: The system uses current configuration settings based on entered dates to update Preview Results.
  • Note: This option only updates the Preview Results pane. It does NOT post or update any accounts.