AUSTIN, Texas The Texas CU Division reminded CUs that they may not deplete the value of an inactive account by any means, including the imposition of a service charge.
Accounts are considered inactive if there has been no account activity by the depositor and the depositor has not communicated with the credit union, the state regulator said yesterday.
Deposit accounts may not be assessed a service charge if there has been no contact with the account holder or depositor initiated activity within the past year. Credit unions were directed to review their records for evidence of a depositor’s whereabouts, looking for the most recent documented communication by an account holder.
The Office of the Texas Comptroller of Public Accounts advises financial institutions to stay in touch with account holders, regardless of their account balance or the value of their property and offers a sample letter for contacting the account owners to verify inactivity. Contact may be made by mail, e-mail, phone (documented in writing), or accessing an online account.
Deposit accounts that have been inactive for three years, where there has been no customer contact and the whereabouts of the owner is unknown, are presumed “abandoned” and must be reported to the Comptroller’s office. The fact that mail is not returned by the post office is not proof of “contact” with the owner.
