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#2210940 - 04/11/19 08:57 PM Controls over Dormant Accounts
Anonymous
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What types of controls does your bank have over dormant (inactive) accounts? Which do you do by law, and which are considered best practice?

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#2210951 - 04/12/19 12:22 PM Re: Controls over Dormant Accounts Anonymous
osucpa Offline
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Joined: May 2011
Posts: 1,400
State law would govern what is considered a dormant account and a lot of banks treat dormant accounts differently. We treat dormant accounts at the customer level not the account level. This means if a customer has multiple accounts (example loans, DDA, CDs or others) and we have good correspondence with the customer (good address) and a savings account may go dormant because of lack of activity, we do not treat this as a dormant account because of the relationship. If an account truly becomes dormant it requires an approval to become activity again.

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#2210985 - 04/12/19 04:25 PM Re: Controls over Dormant Accounts Anonymous
P*Q Offline

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Joined: May 2001
Posts: 8,458
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Here at my bank, my department reviews every single transaction that made an account active from an inactive/dormant status to ensure procedure was followed and no one provided an override for themselves (requires supervisor override). Cumbersome at times but necessary due to the past history of employee abuse of dormant accounts unfortunately.

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