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#1564863 - 06/14/11 09:40 PM Sending Periodic Statements on Dormant Accounts
Tabbetha, CRCM Offline
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Joined: Feb 2009
Posts: 44
Mississippi
Can anyone tell me whether it permissible to discontinue sending monthly periodic statements on accounts that are dormant? TISA says that we aren't required to send a statement but if we do, then we have certain information to disclose. We do charge a monthly dormant fee. Are there other rules to be considered? I have looked at MS state law 89-12-5 concerning escheatment and abandoned property but I didn't see anywhere that said we had to send a statement monthly. Our EFT notice also states that we will send a monthly statement. Of course if there is no activity there will be no disputes right?
Can we discontinue sending the montlhy periodic statement on dormant accounts?

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#1564875 - 06/14/11 09:47 PM Re: Sending Periodic Statements on Dormant Accounts Tabbetha, CRCM
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
Why would you discontinue sending statements if they are not coming back? The accounts are not dormant, they just have met your definition of inactive.
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#1564878 - 06/14/11 09:59 PM Re: Sending Periodic Statements on Dormant Accounts rlcarey
Tabbetha, CRCM Offline
Junior Member
Joined: Feb 2009
Posts: 44
Mississippi
We are considering this option to save money on statements and postage. With our system, it's either active or dormant. There is not an inactive status. Our definition of dormant is no activity for one year.

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#1564882 - 06/14/11 09:57 PM Re: Sending Periodic Statements on Dormant Accounts Tabbetha, CRCM
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
So at the time you begin charging them a dormant fee you are going to shut off their statements - I guess personally, I would not go down that road.
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#1564887 - 06/14/11 10:14 PM Re: Sending Periodic Statements on Dormant Accounts rlcarey
Doug Hendrickson Offline
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Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
I agree. The dormancy fee should cover the costs of statements and postage, and whatever other 'monitoring' you may do. I would not start charging that fee and then stop sending statements, as long as they are not being returned.
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#1565628 - 06/16/11 05:03 AM Re: Sending Periodic Statements on Dormant Accounts Doug Hendrickson
Denovo Co Offline
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Joined: Jan 2005
Posts: 375
NM
On a another question relative to this topic, can we close and send the account holder a cashiers check for the balance in the accounts (most are less than $10) if they have had no activity on the accounts for over a number of years and we are not getting any returned mail or indication that the customer is no longer around?

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#1565636 - 06/16/11 11:10 AM Re: Sending Periodic Statements on Dormant Accounts Denovo Co
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
You would have to look at your depositor's contract, but most banks reserve the right to close the account at any time. I would see nothing wrong with sending them a letter saying that you are going to close the account on xx/xx/xx and mail them a check unless you notice that the customer is starting the use the account.
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