Can we charge customers (or their authorized representatives) our standard research fee when they request copies of statements or other documents for the purpose of determining Medicaid eligibility? We disclose the research fee in our Truth in Savings Act (TISA) disclosures.

Yes, we believe you may charge customers or their authorized representatives for research fees related to requests for documents used to determine customers’ Medicaid eligibility — provided such fees are permitted by the terms of your account agreement.

We are not aware of any prohibition against charging such fees, and the Illinois Banking Act provides that the establishment of account service charges and the amount of the charges — not otherwise limited or prescribed by law — is a business decision for a bank to make based on prudent business judgment and safe and sound operating standards. Consequently, given that the research fee was disclosed and provided the fee is allowed by your account agreement, we believe you may charge customers and their representatives for documentation establishing customers’ Medicaid eligibility.

Additionally, we note that the Illinois Banking Act expressly authorizes banks to seek reimbursement for the costs of “searching for, reproducing, and disclosing a customer’s financial records” from customers who sign a consent and authorization form authorizing the disclosure of their financial records directly to the Illinois Department of Healthcare and Family Services to establish their Medicaid eligibility.

For resources related to our guidance, please see:

Regulation DD, 12 CFR 1030.4(b)(4) (“Account disclosures shall include the following, as applicable: . . . The amount of any fee that may be imposed in connection with the account (or an explanation of how the fee will be determined) and the conditions under which the fee may be imposed.”)

Illinois Banking Act, 205 ILCS 5/5e(b) (“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.”)

Illinois Banking Act, 205 ILCS 5/48.1(b)(20)(D) (“A bank shall be reimbursed by the customer for all costs reasonably necessary and directly incurred in searching for, reproducing, and disclosing a customer’s financial records required or requested to be produced pursuant to any consent and authorization executed under this paragraph (20). The requested financial records shall be delivered to the Department within 10 days after receiving a properly executed consent and authorization or at the earliest practicable time thereafter if the requested records cannot be delivered within 10 days, but delivery may be delayed until the final reimbursement of all costs is received by the bank. The bank may honor a photostatic or electronic copy of a properly executed consent and authorization.”)

Illinois Banking Act, 205 ILCS 5/48.1(b)(20)(A) (“This Section does not prohibit: . . .The furnishing of financial records of a customer to the Department to aid the Department's initial determination or subsequent re-determination of the customer's eligibility for Medicaid and Medicaid long-term care benefits for long-term care services, provided that the bank receives the written consent and authorization of the customer . . .”)