Bankers Threads
Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network

Learn more about

MEMBERS


















Have a Question?
Looking for a
Product or
Service?

Our Vendor
Advisory Board








Topic Options
#1375746 - 04/16/10 03:52 PM Dormant Account Fees
NB569 Offline
Member

Registered: 12/29/06
Posts: 86
Do I understand correctly that Texas banks cannot charge fees on dormant accounts? Can someone point me to where I can find that? Any help is greatly appreciated!!!

Top
#1376368 - 04/19/10 12:53 PM Re: Dormant Account Fees [Re: NB569]
duplextx Offline
100 Club

Registered: 10/22/02
Posts: 144
Loc: Dallas, TX
If I may, I'd like to quote the following as provided by Mr. Shannon Phillips, Deputy General Counsel for Independent Bankers Association of Texas, he provided in 2008.

If the account is "inactive" as defined by the escheat law (i.e. no customer transaction for one year and no communication from the borrower), the answer is no. Texas law prohibits it. However, if the account is "dormant" as defined by the bank (e.g. no customer transaction for 90 days), then the fee could be imposed until the account becomes inactive.

See Texas Property Code 73.003. This is the Texas law referred to above that says that you cannot service charge an "inactive" account (73.003 also provides the definition of "inactive" I gave above.). But also see 12 CFR 7.4002, which permits national banks to charge deposit account fees. I believe national banks have a preemption as to dormant account fees, but only to that part that prohibits dormant account fees--not as to the state unclaimed property law as a whole. In order to charge a dormant account fee, you would have to contract to do so and also disclose them in your Truth in Savings disclosure.

If the account stays inactive long enough, it will then become abandoned. Pursuant to Texas Property Code 73.101, an account is presumed abandoned if: (1) it has been inactive for at least 5 years; (2) the location of the depositor or owner of the safe deposit box is unknown; (3) and the account or the contents of the box have not been delivered to the comptroller in accordance with Chapter 74 of the Property Code. If you have abandoned property, Chapter 74 controls its disposition.
_________________________
This is the sort of stuff that makes "retirement" look oh-so-very attractive!

Top
#1422915 - 08/02/10 03:51 PM Re: Dormant Account Fees [Re: duplextx]
dcl1963 Offline
100 Club

Registered: 02/28/06
Posts: 174
Loc: LA
Our bank is chartered in LA and has locations in TX. Our deposit agreements are governed by LA law - can a fee for a dormant or inactive account be charged to our customers who reside in TX and bank at our TX locations? I thought there could be not fee assessed even though we follow LA law because of Unclaimed Property code...
_________________________
In God we trust, all others pay cash. . . Jean Shepherd

Top
#1422920 - 08/02/10 03:58 PM Re: Dormant Account Fees [Re: dcl1963]
TheRealZaibatsu Offline
Diamond Poster

Registered: 12/10/07
Posts: 1566
Texas Property Code Sec. 73.002 DEPOSITORY. For the purposes of this chapter, a depository is a bank, savings and loan association, credit union, or other banking organization that:

(1) receives and holds a deposit of money or the equivalent of money in banking practice or other personal property in this state; or

(2) receives and holds such a deposit or other personal property in another state for a person whose last known residence is in this state.

Acts 1983, 68th Leg., p. 3607, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 13, eff. Sept. 1, 1997.
_________________________
Only two things that money can't buy, that's true love & homegrown tomatoes

Top
#1431768 - 08/19/10 04:24 PM Re: Dormant Account Fees [Re: TheRealZaibatsu]
Andy Z Offline

10K Club

Registered: 10/27/00
Posts: 25251
Loc: On the Net
States will sometimes take each other to court for escheatable money. They will each want their state laws to apply. Generally, as is noted for this, it will be where the customer was.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Top


Moderator:  Andy Z