With CU*Answers’ latest software release, tracking recoveries for written off loans just got easier. Starting May 16, 2022, daily interest is automatically being accrued and stored for written off loans. The new informational only “interest accrued since write-off” figure does not interfere with the credit union’s books. In addition, the system can now record miscellaneous collection expenses or fines/fees at the time of write-off. When the member does finally make a payment, the credit union can easily capture not only the loan’s principal balance, but also the accrued interest since write-off and any appropriate collections expenses.
These enhancements provide better recovery reporting, improved ability to calculate net losses and will help credit unions calculate a more accurate payoff amount for written off loans.