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  1. #1
    Join Date
    Dec 2017
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    1

    Bank closed an account for "inactivity"

    I am a resident of Indiana.

    I understand that my issue is not serious, but I had to find out for my own sake what the deal is.

    I have 2 accounts that I opened with Old National Bank around 2012. One for savings and one for checking.

    I log in to online banking regularly to pay off credit cards, etc. But 99% of the time I've used the checking account, and used the savings account very little.

    Well I discovered that the savings account has been locked for inactivity. I have to go into a local branch and make a $1 deposit to reactivate the account.

    I started a conversation with their online support to remove the lock, whose responses just made me irate. They referred me to the contract I signed when I opened the account, which I partially understand.

    But...

    The way I understood the Indiana law (Indiana Code Title 32. Property § 32-34-1-20) is that any communication with the banking institution constitutes an interest in other accounts under the same name. If I've consistently logged in to the the "account" linked to both accounts, how can they get away with setting one account as inactive? (And then a $5 monthly fee)

    The I cited specifically refers to reclaiming unclaimed money for the state. Then why would a bank be able to claim it for themselves in the first place, or have this in a contract?

    Any clarity on this annoying issue is appreciated.


  2. #2
    Join Date
    Jan 2005
    Location
    California
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    71,240
    Quote Originally Posted by Layman123 View Post
    I am a resident of Indiana.

    I understand that my issue is not serious, but I had to find out for my own sake what the deal is.

    I have 2 accounts that I opened with Old National Bank around 2012. One for savings and one for checking.

    I log in to online banking regularly to pay off credit cards, etc. But 99% of the time I've used the checking account, and used the savings account very little.

    Well I discovered that the savings account has been locked for inactivity. I have to go into a local branch and make a $1 deposit to reactivate the account.

    I started a conversation with their online support to remove the lock, whose responses just made me irate. They referred me to the contract I signed when I opened the account, which I partially understand.

    But...

    The way I understood the Indiana law (Indiana Code Title 32. Property § 32-34-1-20) is that any communication with the banking institution constitutes an interest in other accounts under the same name. If I've consistently logged in to the the "account" linked to both accounts, how can they get away with setting one account as inactive? (And then a $5 monthly fee)

    The I cited specifically refers to reclaiming unclaimed money for the state. Then why would a bank be able to claim it for themselves in the first place, or have this in a contract?

    Any clarity on this annoying issue is appreciated.
    Go deposit the buck...or mail it in even.


  3. #3
    Join Date
    Nov 2005
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    St. Richard's
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    You can put your tiny savings in a credit union with better terms.

    You could buy a savings bond.


  4. #4
    Join Date
    Aug 2015
    Location
    Phoenix, AZ
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    4,237
    Quote Originally Posted by Layman123 View Post

    The way I understood the Indiana law (Indiana Code Title 32. Property § 32-34-1-20) is that any communication with the banking institution constitutes an interest in other accounts under the same name. If I've consistently logged in to the the "account" linked to both accounts, how can they get away with setting one account as inactive? (And then a $5 monthly fee)

    The I cited specifically refers to reclaiming unclaimed money for the state. Then why would a bank be able to claim it for themselves in the first place, or have this in a contract?
    You've referred to a statute that has nothing to do with your situation.

    Quote Originally Posted by Layman123 View Post

    Any clarity on this annoying issue is appreciated.
    You will obtain clarity when you read your account agreement which is your contract with the bank in which you allowed the bank to do exactly what it did do with an inactive account.

    If you no longer have a copy of the agreement you got when you opened the account, you can get one from the bank.


  5. #5
    Join Date
    May 2004
    Posts
    76,803
    Quote Originally Posted by Layman123 View Post
    I am a resident of Indiana.

    I understand that my issue is not serious, but I had to find out for my own sake what the deal is.

    I have 2 accounts that I opened with Old National Bank around 2012. One for savings and one for checking.

    I log in to online banking regularly to pay off credit cards, etc. But 99% of the time I've used the checking account, and used the savings account very little.

    Well I discovered that the savings account has been locked for inactivity. I have to go into a local branch and make a $1 deposit to reactivate the account.

    I started a conversation with their online support to remove the lock, whose responses just made me irate. They referred me to the contract I signed when I opened the account, which I partially understand.

    But...

    The way I understood the Indiana law (Indiana Code Title 32. Property § 32-34-1-20) is that any communication with the banking institution constitutes an interest in other accounts under the same name. If I've consistently logged in to the the "account" linked to both accounts, how can they get away with setting one account as inactive? (And then a $5 monthly fee)

    The I cited specifically refers to reclaiming unclaimed money for the state. Then why would a bank be able to claim it for themselves in the first place, or have this in a contract?

    Any clarity on this annoying issue is appreciated.
    When a bank closes an account for inactivity the bank would then, after a certain amount of time, would turn the money over to the State of Indiana to sit in the unclaimed funds account. The bank would not be able to EVER claim the money for themselves.

    I do agree that if you have an savings and checking account that are linked to each other, and you are active with the checking account then they should not freeze your savings. However, in order to avoid that then once a month transfer (using the online method) a little money from your checking account to your savings account.


  6. #6
    Join Date
    Jul 2017
    Posts
    726
    Quote Originally Posted by LdiJ View Post

    I do agree that if you have an savings and checking account that are linked to each other, and you are active with the checking account then they should not freeze your savings.
    That depends a great deal on the applicable state law. I have two accounts that are linked at one of my banks. One account had no activity for years; it just sat there. The other was very active with transactions every month. Under the applicable law here, the bank was required to turn over the inactive account to the state anyway after the period set by law had passed. My banker notified me of the upcoming transfer and all I had to do was make an active confirmation that I was aware of the account to put on file with the bank to satisfy state regulators. But had I not done that, my inactive account would have gone to the state as unclaimed funds even though it was linked to a very active one.


  7. #7
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    Jan 2005
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    California
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    Quote Originally Posted by Taxing Matters View Post
    That depends a great deal on the applicable state law. I have two accounts that are linked at one of my banks. One account had no activity for years; it just sat there. The other was very active with transactions every month. Under the applicable law here, the bank was required to turn over the inactive account to the state anyway after the period set by law had passed. My banker notified me of the upcoming transfer and all I had to do was make an active confirmation that I was aware of the account to put on file with the bank to satisfy state regulators. But had I not done that, my inactive account would have gone to the state as unclaimed funds even though it was linked to a very active one.
    Which is why the OP should throw a buck in to the account


  8. #8
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    May 2004
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    Quote Originally Posted by Zigner View Post
    Which is why the OP should throw a buck in to the account
    A simple transfer, using the online method to do so, would take no time at all.


  9. #9
    Join Date
    May 2017
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    1,187
    Unless the OP can no longer access the closed account online because it is closed.


  10. #10
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    May 2004
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    Quote Originally Posted by PayrollHRGuy View Post
    Unless the OP can no longer access the closed account online because it is closed.
    Right, the person has to do it on a regular basis to stop the account from being closed for inactivity.


  11. #11
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    Jan 2005
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    California
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    Quote Originally Posted by LdiJ View Post
    Right, the person has to do it on a regular basis to stop the account from being closed for inactivity.
    So, in THIS case, the OP can't do an online transfer since the account has already been "suspended" due to inactivity. The OP should really go to the branch and deal with this, just to make sure the account is properly reopened, if that is what he desires.


  12. #12
    Join Date
    May 2004
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    76,803
    Quote Originally Posted by Zigner View Post
    So, in THIS case, the OP can't do an online transfer since the account has already been "suspended" due to inactivity. The OP should really go to the branch and deal with this, just to make sure the account is properly reopened, if that is what he desires.
    I was under the impression that he had already done that. My advice was for going forward.


  13. #13
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    Jan 2005
    Location
    California
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    Quote Originally Posted by LdiJ View Post
    I was under the impression that he had already done that. My advice was for going forward.
    Gotcha - that makes sense.


  14. #14
    Join Date
    Sep 2017
    Location
    New York
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    16
    Quote Originally Posted by Layman123 View Post
    I am a resident of Indiana.

    I understand that my issue is not serious, but I had to find out for my own sake what the deal is.

    I have 2 accounts that I opened with Old National Bank around 2012. One for savings and one for checking.

    I log in to online banking regularly to pay off credit cards, etc. But 99% of the time I've used the checking account, and used the savings account very little.

    Well I discovered that the savings account has been locked for inactivity. I have to go into a local branch and make a $1 deposit to reactivate the account.

    I started a conversation with their online support to remove the lock, whose responses just made me irate. They referred me to the contract I signed when I opened the account, which I partially understand.

    But...

    The way I understood the Indiana law (Indiana Code Title 32. Property § 32-34-1-20) is that any communication with the banking institution constitutes an interest in other accounts under the same name. If I've consistently logged in to the the "account" linked to both accounts, how can they get away with setting one account as inactive? (And then a $5 monthly fee)

    The I cited specifically refers to reclaiming unclaimed money for the state. Then why would a bank be able to claim it for themselves in the first place, or have this in a contract?

    Any clarity on this annoying issue is appreciated.
    Usually, it happens that banks use to close those accounts which are inactive for a long time and starts deducting the amount which has kept within as bank charges.


  15. #15
    Join Date
    Jul 2005
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    guess ;)
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    Quote Originally Posted by MichaelRBrya View Post
    Usually, it happens that banks use to close those accounts which are inactive for a long time and starts deducting the amount which has kept within as bank charges.
    Please pay attention to the dates on the opening poster FIRST post. This one is from 40 days ago and OP has never posted back. There are at LEAST 10 pages of new threads.....why do you keep posting to old ones?

    What type of law do you practice?


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