Hello,

Can anyone tell me whether they reactivate inactive accounts with verbal confirmation from their clients? Does the REG state anything specifically about this method?

Thanks very much,
Jennie D.

We do. You'll need to look at your state's unclaimed property laws. Our state defines postitve owner contact as:

• deposits
• withdrawals
• letters
• phone calls
• address changes
• positive owner contacts with a related account

I agree with 'Lil Freak, that this is a matter of state law, but in some state, such as Indiana, the dormant account information is separate from the unclaimed property laws. Make sure you are looking in the right place in your state's laws for this information.

Also, be cautious when dealing with "inactive" vs. "dormant" accounts. Your customer agreement/fee schedules should clearly define these terms as they are impacted by your practices. The terms are not interchangeable in any state laws I have read. Generally, state law addresses dormancy and that can differ significantly from what some banks term as "inactive".