Charge-Off Policy Template

Description

This comprehensive Charge-Off Policy template is an essential tool for credit unions seeking to establish clear guidelines for managing delinquent loans and accounts. Designed by industry experts, this Word-downloadable document provides a robust framework for implementing consistent charge-off procedures across your organization.

The template covers all aspects of the charge-off process, including criteria for identifying accounts eligible for charge-off, timing considerations, documentation requirements, and regulatory compliance measures. It outlines specific procedures for different loan types, such as consumer loans, real estate loans, and credit card accounts, ensuring a tailored approach to each product category.

Key sections of the policy template address topics such as:

1. Charge-off thresholds and timelines
2. Required documentation and approval processes
3. Handling of collateral and security interests
4. Reporting requirements and record-keeping
5. Recovery efforts and debt sale procedures
6. Compliance with applicable laws and regulations

This customizable template allows credit unions to easily adapt the policy to their specific needs, risk tolerance, and operational structure. It includes placeholders for institution-specific information and offers flexibility to modify or expand sections as required.

By implementing this comprehensive Charge-Off Policy, credit unions can ensure consistent decision-making, mitigate risks associated with delinquent accounts, and maintain compliance with regulatory standards. This template serves as a valuable resource for financial institutions looking to streamline their charge-off processes and maintain a healthy loan portfolio.