OLR Bill Analysis

sHB 5003 (as amended by House “A”)*

AN ACT REQUIRING NOTICE OF IMPOSITION OF DORMANCY FEES ON INACTIVE DEPOSIT ACCOUNTS.

SUMMARY:

This bill requires financial institutions that impose dormancy fees on inactive deposit accounts to notify account holders at least 15 days before the institution can impose the fee. The notice must state, in at least 12 point bold-face type, that the account will become inactive and a dormancy fee may be imposed. It must be mailed to the depositors' last-known mailing address. The requirement does not apply to deposit accounts for which the institution sends periodic statements.

*House Amendment “A” requires the notice to be sent before the account becomes inactive, rather than within 45 days of determining the account is inactive. It also requires, rather than allows, the notice to be sent to the account holder's last know address.

EFFECTIVE DATE: October 1, 2007

COMMITTEE ACTION

Banks Committee

Joint Favorable Substitute

Yea

18

Nay

0

(03/06/2007)