We are not aware of any Illinois law that would prevent your institution from charging a service fee that has been agreed to by your customers on dormant accounts. From what you have told us, your account agreements permit you to impose new fees with thirty days’ notice to your customers. If you have complied with that requirement, you should be able to charge the service fees under the Illinois Banking Act.

While the Illinois Banking Act does not specifically mention service fees, it does state that a bank may “elect to contract for and receive interest, fees, and other charges” subject only section 4(1) of the Interest Act and any laws applicable to “credit secured by residential real estate.” 205 ILCS 5/5e. The only provisos in Section 5e limiting a bank’s ability to charge fees are that the customer must agree to the fees and that the bank must set its fees based on its “prudent business judgment and safe and sound operating standards.” 205 ILCS 5/5e. Similarly, subsection 4(1) of the Illinois Interest Act allows banks to charge any “charge” that a customer agrees to pay: “It is lawful for a state bank or a branch of an out-of-state bank . . . to receive or contract to receive and collect interest and charges at any rate or rates agreed upon by the bank or branch and the borrower.” 815 ILCS 205/4(1).