Currently we handle deposit charge offs in the branches.
I'm thinking that they should be handled in a different department like Deposit Operations. How does your bank handle charge offs for deposit accounts?

In most cases an EVP has to authorize the charge-off. Once they do, currently the New Accounts folks handle all the transactions which need to be performed, since it usually involves a few general ledger accounts in addition to the customer's account.

Our operations departments charge off accounts but our officers see the list of accounts to be charged off and can override and choose to keep an account open if it's one of their customers.

Based on interagency guidance, overdrafts need to be charged off within 60 days.

Any "discretion" in charging them off would have to be within that period. After 60 days, I would suggest that the charge off be handled automatically by back office personnel and that the responsibility for collecting it be assigned to the appropriate party.

Ken, can you give us the interagency guidance on this? Thank you!

Thanks!!

We do not offer an overdraft protection program. Does this guidance apply to us in the case of overdrafts (due to NSF's) to also be charged off within 60 days?

It applies no matter how a deposit account ends up in an overdraft situation.

From page 3:

All overdrafts, whether or not subject to an overdraft protection program, are subject to the safety and soundness considerations contained in this section.

The mandatory charge off is about the accuracy of the bank's income statement, not about overdraft services.

Thanks again, Randy and Ken.