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#2256514 - 07/09/21 06:59 PM Dormant & Inactive Accounts
Jenny Roberts Offline
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Joined: Feb 2014
Posts: 153
Tennessee
We have a procedure where a deposit account or online banking account goes inactive after 1 year and dormant after 18 months. If the customer of this type of account makes a withdraw or writes a check or etc. from this account, they are required to reactivate it by identification verification and signing a reactivation form to help deter possible identity theft.

I was wondering if other banks are doing this. We get our ears blown back sometimes over customers having to sign the form even though we try to explain that it is for their protection. We are wondering if we need to change our thought process and offer more ways of identification other than signing the form or if we should just reject them if they hit our rejects because they are active or dormant. If we return them, we would then face the issue though with customers getting mad if we automatically returned the items....

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#2259884 - 09/17/21 11:21 PM Re: Dormant & Inactive Accounts Jenny Roberts
DingoJ Offline
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Joined: Sep 2012
Posts: 72
We have what we call a Dormant Release Authorization form which is always completed when a branch manually updates the dormant field on an account. What is required on the form and how many people must sign it depends on the activity being used to take the account out of dormancy:

1) Customer walks into branch: 3 signature required: Person helping customer, Manager, and Customer.

If it isn't discovered until later that the customer came into the branch, then the branch would research what was done that day (withdrawal, cash a check, etc.) and a copy of whatever item the customer signed that day would be attached in place of the customer signature on the Release form. Of course the customer’s signature has to be verified (compared to signature card) by two people at the branch, one being a manager.

If the customer didn’t sign anything that day, then this method cannot be used.

We also use DocuSign and can send the release form to the customer that way also.

2) The customer sends in a signed letter. Requires two branch signatures on form, one must be a manager, and letter from customer is attached.

3) Customer conducts a transaction which requires no branch interaction – this could be logging into their online banking, accessing telephone banking, or making a Debit Card transaction to a brick-and-mortar merchant. Only one branch signature is required on the form, plus they copy and paste the customer initiated activity from the account history to the form.

4) As an exception we allow telephone verification – however that requires that the manager perform a call-back to the customer to a number on file. We try to opt for DocuSign instead of phone verifications, but we do once in a while have some older customers that would not be able to navigate even something as easy as DocuSign.

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#2259919 - 09/20/21 03:52 PM Re: Dormant & Inactive Accounts Jenny Roberts
P*Q Offline

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We do not utilize a form. However, each time an inactive or dormant account goes active a letter is sent to the address on file confirming the activation and to inform us if they didn't do this, it's a good control to have.

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#2259927 - 09/20/21 04:53 PM Re: Dormant & Inactive Accounts Jenny Roberts
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,786
Galveston, TX
Assuming you even currently have a valid address and most the time on dormant accounts - you do not.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2259935 - 09/20/21 05:40 PM Re: Dormant & Inactive Accounts Jenny Roberts
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Not in our case Randy, as I stated, it's been a good control for us. Additionally my team reviews activity daily on these accounts.

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