Skip to content
BOL Conferences Top Gun 23
Learn More - Click Here!

Thread Options
#223682 - 08/04/04 08:32 PM Can a service fee close a savings account?
Gray Mare Offline
Junior Member
Joined: Jun 2002
Posts: 39
I was told that a service fee can not close a savings account. Here's my example: Someone has a savings account with $.25 in it. If we charge $2.00 if the balance drops below $100.00, can we actually close this account out? We currently don't charge if there is not at least $2.00 in the account, so we don't make the account have a deficit balance. We do the same thing with dormant accounts. Can we charge these accounts still when the balances get below the fee amount?
_________________________
I don't know all the answers.... but I know where to get them!

Return to Top
Operations Compliance
#223683 - 08/04/04 10:35 PM Re: Can a service fee close a savings account?
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
Sure - why not, the customer owes you the money under the depositor's agreement that they signed. However, if the account is dormant - you need to refer to State for guidance on allowable charges.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#223684 - 08/04/04 11:38 PM Re: Can a service fee close a savings account?
Banker Boy Offline
Member
Banker Boy
Joined: Oct 2003
Posts: 69
Florida
If the balance is less than the amount of the service fee, we charge the service fee in the amount of the remaining balance and close the account.

Return to Top
#223685 - 08/05/04 05:22 PM Re: Can a service fee close a savings account?
Strategery Offline
100 Club
Strategery
Joined: Jan 2004
Posts: 125
Snow Country
However, you may still need to look to state law for closing account -- some require adequate notice so you can't just service charge and close without consent from the customer. Non-response to a notice or letter of intent to close will usually constitute implied consent if so stated in notice or letter.

Return to Top

Moderator:  Andy_Z, John Burnett