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#2025084 - 07/03/15 04:10 PM Inactivity vs. Dormant Account
sra724 Offline
Junior Member
Joined: Jul 2011
Posts: 46
I want to charge a $5.00 fee for EVERY checking and savings account that has had no activity for 12 months. The fee will not be more than $5.00 per month for 12 months and not to exceed $60.00. However, some say this is a dormant account fee under GA Law and I can't charge it that early on a savings account.
Does anyone charge an inactivity/dormant account fee on inactive checking and savings accounts beginning month 13 of inactivity?
Our accounts go inactive at 10 months and dormant at 12. Is this wrong?
My fee schedule says "when an account has neither increased or decreased for 12 months"
Thanks!!

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#2025582 - 07/07/15 03:02 PM Re: Inactivity vs. Dormant Account sra724
waldensouth Offline
Power Poster
waldensouth
Joined: Nov 2001
Posts: 7,983
FINALLY ABOVE the gnat line
See the Rules and Regulations of GA Section 80-1-8.01 that covers Dormant accounts based on account type and fees.

DDA inactive 12 months no activity
SAV/TIME inactive 5 years no activity
Official Checks - 2 years

You may charge either $5 per month not to exceed $60 OR the regular service charge for the account whichever you disclose to the customer as being the charge for the dormant account. Absent any disclosure you are limited to $5/$60 total. You may only charge either in the 1st 12 months of dormancy. You could also wait and withhold the full amount of fees just before escheating to the state.

You are only allowed to collect a dormant fee for the first 12 months of dormancy whether it is the $5 or the regular service charge. Thereafter - no fee.
_________________________
"Once you learn to read, you will be forever free."

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My Opinion Only.

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#2026617 - 07/10/15 07:20 PM Re: Inactivity vs. Dormant Account sra724
sra724 Offline
Junior Member
Joined: Jul 2011
Posts: 46
Ok, but am I required to go by this law to charge an fee for inactivity? I have gotten people that said savings are 36 months and then you can charge. Some people said I am bound by the GA law that you reference and 5 years. I called the GA Dept of Banking and the gentleman I talked to acted like it was more of a terminology issue.
I guess I just want to know if anyone charges an inactivity fee or dormant account fee for a savings accounts at month 13?
I get we are required to turn the account over at 5 years but is what I want to do breaking the dormant account laws of escheatment?
Thanks!

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#2110158 - 12/08/16 06:48 PM Re: Inactivity vs. Dormant Account sra724
Monster Offline
Platinum Poster
Joined: Sep 2015
Posts: 500
SRA - did you ever find anything out? I'm in a similar scenario.

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