We do not believe that a bank may retain fees on abandoned cashier’s checks and money orders, though this is an exception to the general rule that you may retain any fees that a customer has agreed to. Illinois law permits a bank to charge any fee in accordance with the bank’s prudent business judgment and safe and sound operating standards. 205 ILCS 5/5e(b). Further, the Uniform Disposition of Unclaimed Property Act [Repealed effective 1/1/18] allows banks to withhold any “charges that may be lawfully withheld” from any abandoned deposit accounts that you must remit (after five years’ inactivity). 765 ILCS 1025/2(a) [Repealed effective 1/1/18]. (The regulations set out specific requirements for withholding those fees. 74 Ill. Adm. Code 760.60. You may also withhold the actual costs of mailing money — the costs of envelopes, postage and stationery. 74 Ill. Adm. Code 760.40.)

However, a different rule applies to abandoned checks and other written instruments “on which a banking or financial organization or business association is directly liable including, by way of illustration but not of limitation, certificates of deposit, drafts, money orders and travelers checks.” On those instruments, you may withhold only “charges that may be lawfully withheld relating to money orders issued by currency exchanges.” 765 ILCS 1025/2(c) [Repealed effective 1/1/18].