Generally, Illinois law permits a bank to determine an appropriate dormancy fee in accordance with the bank’s prudent business judgment and safe and sound operating standards, provided that your customer has agreed to the charge in a deposit account agreement or signature card. 205 ILCS 5/5e(b). If an account has been inactive long enough to be deemed “abandoned” and remitted to the State Treasurer, the Uniform Disposition of Unclaimed Property Act specifically permits banks to withhold any lawful charges from such accounts, including dormancy fees. 765 ILCS 1025/2(a) [Repealed effective 1/1/18].

Illinois administrative rules provide more detail on what constitutes a “lawful charge.” The charges must be permitted under a “valid, enforceable, written contract,” and your submission to the State Treasurer must include a copy of the contract authorizing the charges, the value of the account and the amount of service charges, and “such other information or documentation as the State Treasurer may reasonably require,” if any. 74 Ill. Adm. Code 760.60.