Do Not Mail (No Statement) Accounts

Generally, all credit union members receive a statement either in paper through the mail or electronically. Accounts that may not receive a statement include:

• Bad address

• Charged-off loans

• Loans in bankruptcy

• Deceased member accounts

In these instances, credit union staff suppress statement mailings by assigning applicable mail codes. A large number of no statement or do not mail accounts without an appropriate explanation is a red flag. In addition, weak or absent controls over do not mail accounts enable employees to conceal fraud.

Examiners can review procedures governing no statement account operations to determine whether adequate controls and processes are in place.

To review no statement account controls, examiners:

• Review written policies or procedures for no statement accounts

• Obtain a Mail Code Summary Report or Statement Suppression Report showing the number of accounts by code—for example, bad address, bankruptcy, e-statements, etc.

• Determine which employees have file maintenance permissions for the mail code field

• Using the same effective date, reconcile the number of member accounts to the mail code report, accounting for all member statements

• Obtain a listing of accounts marked no statement, or do not mail, from the data processing system and select a sample of accounts to review for unusual or unreasonable activity

  • If applicable, research unusual transactions by reviewing source documents

• Sample accounts marked no statement or do not mail to appropriate documentation, such as a signed do not mail form

  • Validate signatures to membership cards

• If a 100 percent member account verification was performed during the examination period, determine the handling of do not mail accounts

• Determine if the supervisory committee, internal auditor, or other designated third party performed a documented internal review of do not mail accounts

Last Updated on October 14, 2021