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#1531612 - 04/05/11 05:53 PM NYS Escheatment Allowable fees
happyauditor Offline
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happyauditor
Joined: Nov 2004
Posts: 812
NY
Can a NY bank include a "handling fee" above the certified mail fee (charged to the account) when sending the required certified mailings for dormant accounts (NY customers) as per NYS Abandoned Property Laws?
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#1531712 - 04/05/11 07:36 PM Re: NYS Escheatment Allowable fees happyauditor
edAudit Offline
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edAudit
Joined: Jul 2008
Posts: 4,797
You are here
http://www.osc.state.ny.us/ouf/handbook_online/MyWebHelp/

http://www.osc.state.ny.us/ouf/handbook_online/banking.pdf

Due Diligence - Banking Institutions
Banking organizations are required to conduct due diligence in the form of mailings and publication.
The associated costs for completing publication and certified mailing due diligence
may be charged individually to the abandoned accounts involved in the due diligence effort,
while the costs for completing the first class mailing requirement cannot be offset. You may
not take a bulk deduction against the report’s total value. A positive customer response to any
due diligence attempt negates the need for further due diligence actions on an account.
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#1531735 - 04/05/11 07:59 PM Re: NYS Escheatment Allowable fees edAudit
happyauditor Offline
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happyauditor
Joined: Nov 2004
Posts: 812
NY
Thank you EdAudit - I did see that - is your interpretation that it is allowable to include reasonable charges to cover the manpower hours to preapre for the certified mailing and the advertising, over an above the actual costs of the certified mail and advertisements? Is that what is meant by "associated costs"? If yes, do you feel we need some sort of basis (reasonable analsysis) for this extra amount charged?

Thanks.
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#1531803 - 04/05/11 09:26 PM Re: NYS Escheatment Allowable fees happyauditor
edAudit Offline
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edAudit
Joined: Jul 2008
Posts: 4,797
You are here
Tring to decide is the reason why the banks that I worked for did not charge.

Judging by your name and mine I try to keep out of that and leave it to a management decision.

In our branches there was not enough money sent to make a difference or to justify contact of our attorney.

I do remember but can not find that there is a fee that the Notary can charge for preparing the forms.
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Opinions can be considered as coming from anywhere but my employer.

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#1532074 - 04/06/11 03:45 PM Re: NYS Escheatment Allowable fees edAudit
happyauditor Offline
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happyauditor
Joined: Nov 2004
Posts: 812
NY
I am performing an audit of compliance with the nys abandoned property law requirements which is why I am asking (we are charging the account an amount more than the actual certfied mail fee). Otherwise, yes I would stay out of it smile
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#1532560 - 04/06/11 09:29 PM Re: NYS Escheatment Allowable fees happyauditor
edAudit Offline
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edAudit
Joined: Jul 2008
Posts: 4,797
You are here
http://law.onecle.com/new-york/abandoned-property/ABP0A5_A5.html

Sorry all there is is the handbook and the legal cite.

There is little guidence.

from the handbook
Costs
You may deduct the mailing costs for certified mail. Deduct such charges from each item for
which you are mailing the notice.
for Safe deposit you have guidence
http://law.onecle.com/new-york/banking/BNK0335_335.html
(e) From the proceeds of the sale, the lessor shall deduct all its
charges and costs as stated in such notice, together with any further
charges and costs that shall have accrued since the mailing thereof,
including reasonable expenses for notice, advertising and sale. The
balance, if any, may be used to pay from time to time the further costs
and charges of safe-keeping and destroying the other contents, if any,
of the safe deposit box. Unless sooner claimed by the lessee of the safe
deposit box so opened, such balance or such part as shall remain after
the payment of such further charges and costs shall, after the
expiration of three years from the time of the opening of the safe
deposit box, be deemed abandoned property subject to the provisions of
article three of the abandoned property law.
_________________________
Opinions can be considered as coming from anywhere but my employer.

CAMS


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#1533525 - 04/08/11 07:29 PM Re: NYS Escheatment Allowable fees edAudit
happyauditor Offline
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happyauditor
Joined: Nov 2004
Posts: 812
NY
Thanks Ed, I agree, not much guidance.
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* My opinion is not necessarily that of my employer.

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