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#94833 - 07/08/03 03:41 PM Ser Chg for Sav Acct
Kari Offline
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Kari
Joined: Sep 2002
Posts: 131
PA
We offer int on sav acct of bal over 100.00. Could we charge a serv chrg on an acct when the bal falls below the 100.00? AND can we continue to SC the acct even when it goes into a dorman stage until escheated? Also please direct me to where I can copy the reg or law. Thank you.

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General Discussion
#94834 - 07/08/03 04:18 PM Re: Ser Chg for Sav Acct
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,629
Cape Cod
If you are subject to Pennsylvania state law on deposit account fees, consider posting your question in the PA-specific forum. Alternatively, contact your state banking association or regulator.
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#94835 - 07/08/03 04:21 PM Re: Ser Chg for Sav Acct
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
We charge on balances under $100, however this fact is disclosed. If you have not been charging and intend to...proper prior notice of change in terms would be required. You will need to refer to your state law on dormant charges and disclosure requirements.
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#94836 - 07/08/03 04:26 PM Re: Ser Chg for Sav Acct
Kari Offline
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Kari
Joined: Sep 2002
Posts: 131
PA
Thank you. We are regulated by the OCC. But I will check my state banking laws. I hope the laws are more helpful than the ILA late fee research was. No one from the state can seem to clarify what the reg actually means. Oh well. Such is the life of a compliance person.

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#94837 - 07/08/03 04:36 PM Re: Ser Chg for Sav Acct
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,485
On the Net
In the case of the definition of a dormant (or in Texas, "inactive") account, state laws will provide this. It may or may not also specify that once in this category you are required to pay interest or allowed assess a fee of any kind. As noted, you should be contracting for what you do.

If you can't find this info and get no assistance in the state room below, try your state association and then post the answer with your question. You may not be the only one wanting to know and your research may assist others in the future searching here.
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#94838 - 07/08/03 04:44 PM Re: Ser Chg for Sav Acct
Kari Offline
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Kari
Joined: Sep 2002
Posts: 131
PA
thank you, I probably seem like I am at my wits end. Sorry. But i have yet to get the hang of where to look for some of these questions that get thrown at me. I guess my concern is with the SC draining an account of a person we simply cannot find. And if the state revenue service would have a problem, since escheatable money goes to them. But the cost of sending stmts and trying to find these people gets expense after a year or so. Thanks again.

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#94839 - 07/08/03 06:03 PM Re: Ser Chg for Sav Acct
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Let me futher explain how our's works. If the balance is under $100, we charge a monthly fee. If it ends up washing the account out before it goes dormant (in Georgia, this period is 12 months of inactivity) that is great! If not, we then charge a $5.00/month dormant fee (fully disclosed) up to $60.00. That is the maximum allowed in this state. You can charge this total at one time prior to escheatment if you wish. Again, this is Georgia law!
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#94840 - 07/08/03 06:10 PM Re: Ser Chg for Sav Acct
Nanwa Offline
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Nanwa
Joined: Oct 2001
Posts: 5,564
Clintonville, WI, USA
Kari, welcome to BOL! It has been a lifesaver for me on many occasions. As Compliance Officer. you sometimes feel like you don't understand a reg, and no one in the bank can help you, BUT BOL CAN! It is just such a relief to know there are others out there who have worked with this stuff and are willing to share that knowledge.

In Wisconsin, we can service charge savings that go under $100, but it has to be disclosed first.
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#94841 - 07/08/03 06:22 PM Re: Ser Chg for Sav Acct
downstown Offline
Gold Star
Joined: Aug 2001
Posts: 295
St. Louis, MO
This page has a link to PA's Abandoned & Unclaimed Property Act.

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#94842 - 07/08/03 07:50 PM Re: Ser Chg for Sav Acct
Kari Offline
100 Club
Kari
Joined: Sep 2002
Posts: 131
PA
Thank you - all of you - I guess I am not out here alone. I think the Unclaimed site may held - I am printing some pages to read now. Thanks again. I really appreciate it.

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