We are not aware of any Illinois or federal laws or regulations that would prohibit charging a paper statement fee on deposit accounts. However, there could be pitfalls if not done carefully.  For example, if certain classes of customers, such as senior citizens or some disabled persons, do not have access to computers — and as a result cannot avoid the fee — this arguably could be viewed as an unfair or abusive practice. It would seem prudent to have a policy that provides exceptions to the fees in such cases (one that is made known to your customers).

Also, for accounts that have a paper statement fee, we would recommend disclosing that under the Regulation DD requirements, and we believe it would be a best practice not to advertise such an account as “free.” A monthly paper statement fee would likely fall into the definition of “maintenance and activity fees,” a term that includes “[t]ransaction and service fees that consumers reasonably expect to be imposed on a regular basis [and] . . . a monthly service fee.” 12 CFR 1030.8(a)(2)Comment 3, Official Staff Commentary, 12 CFR 1030.8(a)(2).

Aside from those considerations, we believe that Subsection 5e(b) of the Illinois Banking Act, 205 ILCS 5/5e(b), appears to authorize this charge. Subsection 5e(b) states:

The establishment of account service charges and the amounts of the charges not otherwise limited or prescribed by law is a business decision to be made by a bank according to prudent business judgment and safe and sound operating standards. In establishing account service charges, the bank may consider, but is not limited to considering, the costs incurred by the bank, plus a profit margin, for providing the service, the deterrence of misuse of the bank’s services, the establishment of the competitive position of the bank in accordance with the bank’s marketing strategy, and the maintenance of the safety and soundness of the bank.

Also keep in mind that, before utilizing electronic statements, your institution must comply with the provisions of the federal Electronic Signatures in Global and National Commerce (E-SIGN) Act, 15 USC 7001(c)(1), and the Illinois Financial Institutions Electronic Documents and Digital Signature Act, 205 ILCS 705/10(a). Those laws require your bank to disclose “any conditions, consequences (which may include termination of the parties’ relationship), or fees” that apply if a customer does not consent to electronic disclosures.