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Handling Dormant Accounts in Montana

July 9, 2026 2:49 pm
By Donya Parrish, MCU VP- Risk Management
A credit union can recognize certain actions or communications as evidence that a member (apparent owner) still has an interest in their account or property. These include:
  • Written or oral communication from the member about their account or property — oral communication must be recorded and preserved with details of when and who they spoke with at the credit union.
  • Presenting a check or receiving a distribution, such as dividends or interest (including electronically).
  • Member-initiated account activity, like logging in to online banking, changing account settings, or modifying the amount or type of funds held.
  • Deposits or withdrawals, including scheduled ones (e.g., payroll), but excluding automatic reinvestment of dividends or interest.
  • Premium payments on insurance policies.
  • Any other action that clearly shows the member knows about the account/property.
This may require you to override automated settings in your system and it is recommended that you keep notes and evidence of any decisions in the event your credit union is audited by the Department of Revenue.
The Montana Department of Revenue Unclaimed Property website is a good resource, including the Unclaimed Property Holders Guide.
Please be aware that Montana does restrict when you can charge a dormancy charge. It is allowed if the following three criteria are met:
  1. A valid contract must be in place to allow for the fee. This would include disclosing the fee (in a newsletter or statement stuffer) 30 days in advance of implementation as well as explaining when it will be assessed in your terms and conditions brochure. The notice should state that the fee is a new term of the account agreement;
  2. The fee is not regularly reversed or otherwise canceled (cannot be refunded*); and
  3. The fee is not unconscionable.

This fee can be charged right up until the time the account is turned over to the Montana Department of Revenue as unclaimed property. Before assessing a dormancy fee, the credit union should implement a policy.

*Note: NCUA has ruled that this does not apply to federal credit unions (FCUs). FCUs may refund the fee when an account is reactivated if they so choose.

You are allowed to access a “dormant account” fee for a period much shorter than when it is considered to be escheated to the state. It needs to comply with above and can differ by type of account. For example, it is common to have a shorter dormancy period on a checking account and to exempt accounts for minors.

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