Is there a specific reg or statute that governs dormant accounts? I don't mean escheat rules, I'm wondering if there is any reg that defines dormant accounts and requires them to be handled in a specific way.

Any help would be great!

You must look at your state laws for the unclaimed property requirements.

I know accounts are considered "dormant" for escheat (unclaimed property) purposes when there's been no activity for a period greater than 12 months. But I was wondering what other institutions do for accounts from the 6-12 month time period before they are considered "dormant" and unclaimed.

Our accounts go to "inactive" after no activity for six months. They got to "dormant" after 12 months. In the dormant state, the dormant message comes up and the general population of users cannot access account info to avoid the account being drained since no one is really watching it. Dormant transactions reject and the staff compares the incoming item to the signature card. Two officers verify the signature and sign off on the form to remove dormant status.

Our state law requires a long period of dormancy before escheatment. We have some customers that are not "lost", they know they have an account with us, they still receive their statements and they are happy to leave it that way. As long as we can contact them, they aren't lost and we don't escheat those accounts to the state. We are a smaller institution so this probably wouldn't work in a large operation but it works for us. I hope this is what you are looking for.

That's exactly how we deal with ours PG - just looking for a little validation on dealing with accounts before they go dormant and subsequently into the escheatment realm. Thanks for the post!