We do not recommend charging a paper statement fee on Basic Checking Accounts (accounts for individuals over age 65 required by the Consumer Deposit Account Act).

The Consumer Deposit Account Act limits minimum balance requirements and activity fees for Basic Checking Accounts without expressly prohibiting other fees, such as paper statement fees. However, charging a paper statement fee could be viewed as contrary to the intent of the law by adding costs to what was intended to be a simple, low-cost product for seniors.

Additionally, charging a paper statement fee on Basic Checking Accounts potentially could raise UDAAP concerns. For example, if a significant portion of your senior customers have limited computer access, it would be difficult for those customers to avoid the paper statement fee — they would not be able to switch to eStatements. Imposing a paper statement fee on that population could be viewed as unfair or abusive.

For resources related to our guidance, please see:

• Consumer Deposit Account Act, 205 ILCS 605/4(b) (“(b) A Basic Checking Account shall be established by either (1) a minimum initial deposit of $100, or (2) a written agreement with the account holder requiring direct deposits with the financial institution by a third party of recurring payments due to the account holder on at least a monthly basis. Except as provided in subsection (d) of this Section, no other minimum balance or minimum deposit requirement may be imposed on a Basic Checking Account.”)

• Consumer Deposit Account Act, 205 ILCS 605/4(c) (“(c) No activity charge may be imposed for the first 10 checks drawn on a Basic Checking Account in any calendar month, provided that a financial institution may charge its customary fee for a stop payment order or any transaction resulting in a check returned due to insufficient funds.”)