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#1821082 - 06/06/13 04:58 PM Dormant accounts
jim mathews Offline
Member
Joined: Feb 2008
Posts: 52
Brighton Co
Dormant accounts in our bank are a problem, primarily because many of the accounts are of types where no service charge is applied. I'm curious about what other banks are doing regarding dormant accounts in an effort to eliminate accounts that are not productive for the bank. We escheat when required by law, but many of these accounts do not qualify for escheat because we have good addresses for them.

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Deposits and Payments
#1821097 - 06/06/13 05:22 PM Re: Dormant accounts jim mathews
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,393
Galveston, TX
Either change the terms and implement a service charge (if allowed by law - for example, not allowed after 12 months of inactivity in Texas) or close the accounts and mail them a check.
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#1821242 - 06/06/13 08:48 PM Re: Dormant accounts jim mathews
RRichmond Offline
Junior Member
Joined: Mar 2008
Posts: 47
We have a dormant fee for accounts with balances below $100 that only kicks in after the account has been inactive for 12 months AND we have no address on file. We did not have a fee before, and this was the first step for us with dormant fees.

A previous bank I worked at charged a dormant fee on all accounts with balances below a certain amount with no activity.
We're in a college town, and it was great for getting rid of very small, abandoned accounts for people who (usually) lived out of state by that point.

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#1823085 - 06/12/13 10:24 PM Re: Dormant accounts jim mathews
el guapo Offline
Gold Star
el guapo
Joined: Jul 2004
Posts: 345
Assuming that you are working only with properties reportable to the State of Colorado, this information is from the Great Colorado Payback general reporting page:
Quote:
ALLOWABLE DEDUCTION

Except for aggregated amounts, you may, by law, voluntarily deduct and retain from each item remitted 2% of the value of the property you are remitting, or $25.00, whichever is less (L). For some types of property you may deduct and retain 2% or $25.00, whichever is more (M). Please refer to Property Code/Property Description & Dormancy Period Chart for eligible property types. The amount deducted from each item cannot exceed the amount due the owner. For instance, if the amount due the owner is $10.00, you cannot retain $25.00, the amount you would retain is $10.00.

Note: Holders may not retain the allowable deduction for properties associated with states other than Colorado.

Also note: Safe-Deposit/Safekeeping items are not eligible for deductions under this provision.


The full text of Colorado's Unclaimed Property Act, which has much more detailed descriptions of how fees can be charged on dormant accounts, can be found here: http://www.colorado.gov/treasury/gcp/images/upa.pdf

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