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Laws On Changing Monthly Fee On Dormant Accounts

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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?

In order:

1.Most definitely. Some states, in fact, ban fees for account dormancy.
2.I'd tread lightly on your second question. Check the abandoned property laws. Many if not all now include a provision that an account is not considered abandoned if its owner has another acknowledged and active account with you.

First published on 09/01/2014

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