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2018 SESSION

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HB 686 Unclaimed property; deposits and funds with financial institutions, charges and interest.

Introduced by: Margaret B. Ransone | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Unclaimed property; deposits with financial institutions; charges and interest. Clarifies the criteria that must be met for a bank or other financial organization to impose charges or cease to pay interest on a dormant or inactive account that differ from those imposed on active accounts. The holder may reverse or cancel dormancy charges or retroactively credit interest upon the request of the owner if it also does so for all such property that becomes subject to certain statutory reporting requirements regarding unclaimed property. If the holder elects not to reverse or cancel dormancy charges or retroactively credit interest with respect to any such property, then it is not required to reverse or cancel dormancy charges or retroactively credit interest for property that becomes subject to the reporting requirements regarding unclaimed property. A holder may also reverse or cancel dormancy charges or retroactively credit interest with respect to any or all such property to correct a documented internal error without becoming required to reverse or cancel dormancy charges or retroactively credit interest for all such property that becomes subject to unclaimed property reporting requirements. An enactment states that the measure is declarative of existing law. This bill is identical to SB 253.

SUMMARY AS PASSED HOUSE:

Unclaimed property; deposits with financial institutions; charges and interest. Revises an exception to a provision that prohibits a bank or other holder from (i) imposing charges on dormant or inactive accounts in a manner that differs from active accounts or (ii) ceasing to pay interest on an inactive account to provide that the holder may impose charges or cease payment of interest due to dormancy but may only reverse or cancel the charges or retroactively credit interest if it does so for all customers that request a reversal or cancellation of dormancy or inactivity charges or a retroactive credit of interest.

SUMMARY AS INTRODUCED:

Unclaimed property; deposits with financial institutions; charges and interest. Removes an exception to a provision that prohibits a bank or other holder from (i) imposing charges on dormant or inactive accounts in a manner that differs from active accounts or (ii) ceasing to pay interest on an inactive account. The deleted exception allows such accounts to be treated differently if the bank or other holder, when it imposes such different charges or ceases paying interest, does not reverse or cancel charges or retroactively credit interest with respect to the property for any reason other than to correct a documented internal error. The deleted exception also authorizes a holder that is a state-chartered credit union to refund charges or reverse or cancel those charges or retroactively credit interest with respect to such property to the same extent that a federally chartered credit union is authorized to do pursuant to federal law.