Compliance Question of the Week
July 25, 2011
July 26, 2011
Can I charge any fees due to dormancy or inactivity, or stop paying interest on a dormant account?
Generally, the credit union cannot impose any charges due to dormancy or inactivity or stop the payment of interest. However, the credit union can impose charges or stop paying interest in three situations.
First, if there is a written contract between the credit union and property owner stating that the credit union can impose a charge or stop the payment of interest. Second, if the property is over ten dollars, the credit union, no more than 3 months before imposing the charges of stopping interest, gives written notice to the owner of the amount of charges at the last known address stating that charges will be imposed or payment of interest will stop. Third, if the credit union regularly imposes such charges or stops the payment of interest and does not regularly reverse or cancel them or retroactively credit interest with respect to the property.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.