We are not aware of any Illinois laws stating the timeframes for charging inactivity fees, provided that the fees comply with the requirements in the new Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA).

Under the Illinois RUUPA, inactivity fees must be authorized by a valid contract that specifies the time in which your bank will assess the fees. Additionally, the amount of the fees must be “not unconscionable considering all relevant factors, including the marginal transactional costs incurred by the holder in maintaining the apparent owner’s property and any services received by the apparent owner.”

For resources related to our guidance, please see:

• Illinois RUUPA, 765 ILCS 1026/15-602(a) (“A holder may deduct a dormancy charge or an escheat fee from property required to be paid or delivered to the administrator if: (1) a valid contract between the holder and the apparent owner authorizes imposition of the charge for the apparent owner’s failure to claim the property within a specified time; and (2) the holder regularly imposes the charge and regularly does not reverse or otherwise cancel the charge.”)

• Illinois RUUPA, 765 ILCS 1026/15-602(b) (“The amount of the deduction under subsection (a) is limited to an amount that is not unconscionable considering all relevant factors, including the marginal transactional costs incurred by the holder in maintaining the apparent owner’s property and any services received by the apparent owner.”)