If an IRA is dormant for 5 years and the customer is 50 years old, do I need to send it to unclaimed property?
Are dormant accounts not subject to receive a monthly statement, or is it still required to be sent via Reg DD?
How much time does it really take for an account to be dormant?
Is there a regulation that states when an HSA account goes dormant? Am curious as to how long an account can stay active with no activity before it is considered to be dormant. Is this something that the bank has to figure out and disclose or is there a required time frame that we must follow.
Our Retail Division is getting very creative in coming up with fees that we have not charged in the past. I understand that dormant/inactivity fees are defined at the State level and are allowed on accounts advertised as "free." Would the same hold true for debit card inactivity and/or online banking inactivity fees? Would these fees be allowed on "free" accounts if properly disclosed? I have the same question for return mail fees.
Is it mandatory for a bank to send notices when an account status changes from active to dormant? We send notices when the account status changes from dormant to active but not the other way.
What is the procedure to activate dormant account with either or survivor instruction if any one comes in the branch to activate account with single identity?
I have two questions in regards to dormant accounts. We consider accounts to be dormant after 24 months of inactivity.
1.Are there varying state laws when it comes to the ability to charge a monthly fee on dormant accounts?
2.If we have a customer that has multiple accounts and they are like titled, same address, can we transfer the funds to an associated active bank account if we disclose this to our clients via some manner of electronic communication?
At my bank, we are trying to decide if inactive accounts and dormant accounts are the same. What are your ideas on this? We are trying to determine for yearly unclaimed funds reporting purposes.
For the last 12 months we have been offering a "free checking" account that we are heavily advertising. The customer who opens the account receives a free gift. We are finding that many customers are opening the account, receiving the gift, and allowing the account to remain "inactive" with a small balance. Our operations group is proposing an $4 inactivity fee to kick in after 6 months of no activity on accounts with balances under $100 to help get these accounts off the books. Of course, we would have to change our disclosures and redisclose to existing customers if we do this. We currently disclose a "dormant" fee that kicks in after 2 years of no activity. I can't find any guidance whether or not a free account can have such an inactivity fee after a certain period. Are you aware of any other institutions charging such a fee? Can such a fee be structured in a way not to violate DD? Our marketing vendor assisting with this free checking account is also a proponent of this inactivity fee.