You asked if banks have to notify a customer when his savings account becomes dormant, and how much they can charge in dormancy fees.

Connecticut law requires the holder of dormant property, including savings accounts, to notify property owners by mail at their last known address within one year before the property is presumed abandoned (CGS § 3-65a). Connecticut’s new unclaimed property law, enacted as part of PA 03-1, June 30 Special Session, reduced from five to three years the time that must pass before a savings account is presumed abandoned. Thus, after two years of inactivity in an account, a bank must notify the accountholder that an additional year of inactivity will lead to a presumption of abandonment, and the funds will be turned over to the state for safeguarding. The 2003 act also prohibited banks and other holders from charging dormancy fees, starting August 16, 2003. Additional information about Connecticut’s unclaimed property law is available on the Treasurer’s website at http: //www. state. ct. us/ott/holderreporting/ucpholder2003. pdf.

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