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#1097233 - 12/15/08 03:54 PM Dormant Account Fees - Waiving
Confused in Compliance Offline
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Joined: Apr 2002
Posts: 228
Under the Florida Statute is says that you can assess a dormant fee if you provide notice and if :

...(c)The holder regularly imposes those charges or ceases payment of interest and does not regularly reverse or otherwise cancel those charges or retroactively credit interest with respect to such property...

Based on that line, we have instructed our ops department that they should not have any policies in place that waive the dormant charges for customers unless it is stictly on an exception basis (i.e., "case by case").

Now our marketing area wants to add the waiver of all dormancy fees for customers as a perk for one of our existing account types. In other words, everyone in that product group will have no dormancy fees assessed as a rule.

In my opinion that violates the state statute.... correct?

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#1097697 - 12/16/08 01:51 AM Re: Dormant Account Fees - Waiving Confused in Compliance
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,929
Galveston, TX
FWIW - I concur with your assessment. I can also tell you from personal experience, this is not an area in which you want to get aggressive. The States consider this money due to them. I was in one State where we were inappropriately assessing service charges on inactive accounts and we had to pay the State a fine in the mid-six figures and this was back in the 80's. I wouldn't even cross the line on a "case-by-case" basis. If they deem that you have violated this portion of the law, they can make you pay them all the service charges you have ever assessed on dormant accounts. That is what happened to us and the settlement was a negotiated settlement.
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#1097900 - 12/16/08 04:24 PM Re: Dormant Account Fees - Waiving rlcarey
Confused in Compliance Offline
100 Club
Joined: Apr 2002
Posts: 228
Thank you! That is what I thought. I appreciate your fast response.

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