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#2235095 - 04/17/20 02:53 PM Dormant Deposit Account Service Charges
Jenny Roberts Offline
100 Club
Joined: Feb 2014
Posts: 162
Tennessee
Does anyone charge a service charge for accounts that have gone dormant? We do but have come into some problems with this. We are thinking about just charging the regular monthly service charge on our checking accounts and no dormant charge but charging a dormant charge on our savings account. Does anyone do this or just not charge a dormant charge at all? Just trying to see what other banks are doing....

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#2235096 - 04/17/20 02:57 PM Re: Dormant Deposit Account Service Charges Jenny Roberts
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,663
Galveston, TX
This is highly State specific as to what is allowed as far as fees on dormant accounts. Your profile shows Tennessee - is that the State you are talking about?

For example, after 12 months of inactivity in Texas - you cannot access any fees at all.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2235097 - 04/17/20 02:59 PM Re: Dormant Deposit Account Service Charges rlcarey
Jenny Roberts Offline
100 Club
Joined: Feb 2014
Posts: 162
Tennessee
Yes we are in Tennessee. We are currently charging a fee and I don't think we need to be but not getting much direction from legal counsel...

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#2235104 - 04/17/20 03:40 PM Re: Dormant Deposit Account Service Charges Jenny Roberts
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,663
Galveston, TX

2017 Tennessee Code
Title 66 - Property
Chapter 29 - Abandoned or Unclaimed Property
Part 1 - Uniform Unclaimed Property Act
§ 66-29-133. Dormancy charge.


Universal Citation: TN Code § 66-29-133 (2017)


(a) A holder may deduct a dormancy charge from property required to be paid or delivered to the treasurer if:

(1) A valid and enforceable contract between a holder and an apparent owner authorizes imposition of the charge for the apparent owner's failure to claim the property within a specified time; and

(2) The holder regularly imposes the charge and does not regularly reverse or otherwise cancel the charge.

(b) The amount of the deduction under subsection (a) is limited to an amount that is not unconscionable considering all relevant factors, including the marginal transactional costs incurred by the holder in maintaining the apparent owner's property and any services received by the apparent owner.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2235107 - 04/17/20 03:58 PM Re: Dormant Deposit Account Service Charges rlcarey
Jenny Roberts Offline
100 Club
Joined: Feb 2014
Posts: 162
Tennessee
thank you!

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#2235144 - 04/17/20 06:44 PM Re: Dormant Deposit Account Service Charges Jenny Roberts
Marmaduchess Online
100 Club
Marmaduchess
Joined: Oct 2009
Posts: 172
Oregon Coast
Pay particular attention to (2) above. My state has the same verbiage and we were told by the examiners that once we waive the fee on one account, we were no longer allowed to charge it on any account.

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