Compliance Blog

A few weeks ago, NCUA published legal opinion letter 08-1030 (November 26, 2008). The letter underscores a federal credit union’s ability to close the inactive accounts of its members. NCUA indicates that credit unions may do so if the policy does not conflict with other federal laws, state escheat laws, or its account agreement  obligations. It urges credit unions to remember that if it charges inactive account fees that caused a member’s share account to fall below the par value amount, it may only close the account if the member has not increased the balance to par value within a period specified in the its bylaws.  Access the letter here.

If your credit union has a policy regarding inactive accounts, I'd give this letter a close read.