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#1614645 - 10/12/11 01:31 PM Dormant Account & Active Account
Compliance101 Offline
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Compliance101
Joined: Oct 2004
Posts: 473
Tennessee
If a customer has a dormant account and an active account, can the bank transfer the funds from the dormant account into the active account? Without contacting the customer?
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#1614859 - 10/12/11 05:54 PM Re: Dormant Account & Active Account Compliance101
el guapo Offline
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el guapo
Joined: Jul 2004
Posts: 345
Has this practice been disclosed prior to account opening to each client? If not then I would be very hesitant to touch funds in an account without the express consent of the client, unless it's time to escheat the funds to the state.

Also, you should look at your state's escheat laws. Many clearly state that if an account owner has another active account then that is sufficient to consider all accounts held by that individual as active. Your bank may have a higher standard for returning the account to an active state, but you would still not escheat the account if your state has the above language.

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#1614886 - 10/12/11 06:34 PM Re: Dormant Account & Active Account el guapo
osucpa Offline
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Joined: May 2011
Posts: 1,402
Most loan and deposit agreements allow for the right of offset. But this situation is different. I know a number of banks do not view an account as dormant if the customer has other active accounts at the bank. There are a lot of customers who have a savings account with no activity but have a checking account with normal activity. But to answer your question, no a bank cannot just create a transfer of funds to make a dormant account become active. This would defeat the purpose of a dormant account.

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