Navigation:  Credit Reporting  > Coding of Derogatory Credit Status > Reporting a Deceased Person

If a customer dies, enter the Death Date on the Detailed Personal Information tab of the Households screen. The system will show the Death Recorded Date (NDDDRD) next to the Death Date (NDDTDT). This date is used in Credit Reporting decisions described below. (See the following example of these fields on the Households screen.)

 

 

For loan accounts, at monthend following the Death Recorded Date entry, the system performs the following:

 

•Changes the Account Ownership code for that customer to "20" (Deceased).

•The ECOA Code for the loan customer changes to "X" (Consumer Deceased), unless it's already set to "Q" (Do not report to Credit Bureaus). Or if institution option DADP is set, then the ECOA Code is set to "T - Terminated." This information is passed to the Credit Report and transmission in the Base Segment or J1/J2 Segment of the loan accounts with which this person is associated.

 

The month following the report of the death, the system does the following:

 

•If it was the IRS Owner who died and there is another living borrower on the loan (only Account Ownership codes 1-4), the monthend credit reporting update process will select the first living borrower on the account to be the IRS Owner. The IRS Owner who died moves to the J1/J2 Segment and continues to report with ECOA Code "X" until the loan is closed. It's up to your institution as to how you want to handle the deceased borrower after that, such as remove their name from the account.

 

•If there is no other co-borrower on the loan, the IRS Owner continues to report in the Base Segment with an X until the loan is closed or released. Follow your institution's protocols as to how to handle the account.

 

If the Death Date is cleared because of a mistake (e.g., applied the Death Date to the wrong person), all of the preceding items are reversed.

 

Deposit Accounts: This only applies to loan accounts. Deposit or other accounts are not reported with ECOA Code X (unless you manually change the ECOA Code to be "X").

 

 

Scenario

 

Grandpa Gerald and his son Marty get a loan for a car. Grandpa Gerald is listed as the IRS Owner on the account, but they are both co-owners. Grandpa Gerald dies before the account is paid off, but the account is still open and Marty is responsible for paying off the rest. After entering Grandpa Gerald's Death Date, at monthend, the system will automatically assign Grandpa Gerald with Account Ownership "20 - Deceased" and ECOA Code "X - Deceased." The next month, Marty will be assigned as the IRS Owner, which means the Credit Report transmission will list Marty as the IRS Owner in the Base Segment, and Grandpa Gerald will be listed in the J1 Segment with ECOA Code "X - Deceased."

 

From that same example, if the account is paid off and closed the same month as Grandpa Gerald's Death Recorded Date or the month following, the system will maintain Grandpa Gerald as the IRS Owner in the Base Segment with ECOA Code "X - Deceased," and Marty will stay listed in the J2 Segment.

 

Note: Anyone with ECOA Code "Q" (Do not report to Credit Bureaus) will not have the ECOA Code replaced with "X" if a Death Date is entered.