Could anyone tell me if there is a maximum fee allowed that a bank could charge an account at the time the funds are being escheated to the state? I have checked the banking laws in Michigan but have had no luck finding anything that pertained to fees the bank could charge.
Thank you!

Here is specifically what I searched on Google - can a bank charge a fee for escheatment in michigan

That search provided quite a bit of information. I assume you've looked here, but just in case (The Michigan Unclaimed Property Act, specifically MCL 567.221 to 567.265)

Here is another specific search from Google - is there a maximum fee a bank can collect for escheatment in michigan

The first thing that popped up:
In Michigan, there is no specific cap on the fees a bank can collect for escheatment. However, banks are required to diligently attempt to locate the rightful owner of unclaimed property before escheatment. Michigan law requires businesses to report unclaimed property, and the state holds the property until the rightful owner or heir comes forward.
Here's a more detailed explanation:
No Fee Cap:
While there's no official cap on fees, the Michigan Unclaimed Property Act focuses on returning property to its rightful owners, not on profiting from the process.


Hope this helps!

No maximum fee, but there is this requirement from MCL 567.227:

(3) A holder may not impose with respect to property described in subsection (1) any charge due to dormancy or inactivity or cease payment of interest unless all of the following requirements are met:
(a) There is an enforceable written contract between the holder and the owner of the property providing that the holder may impose a charge or cease payment of interest.
(b) For the property of a value in excess of $2.00, the holder, not more than 3 months before the initial imposition of those charges or cessation of interest, has given written notice to the owner of the amount of those charges at the last known address of the owner stating that those charges will be imposed or that interest will cease. However, the notice required in this subdivision need not be given with respect to charges imposed or interest ceased before March 28, 1996.
(c) The holder regularly imposes such charges or ceases payment of interest and does not regularly reverse or otherwise cancel them or retroactively credit interest with respect to the property.

Thank you both. Yes, we would exhaust all efforts to ensure the funds are given to the rightful owners, not the state of Michigan. We have just seen a wide range of fees by other financial institutions, and some were quite high.

Just be aware that you have to meet these conditions in Michigan. States get really picky when banks do not comply with the law as they see it as stealing State funds, I was at one bank in the 80's that had to cough up six figures to the State. You might want to talk to your legal counsel as while your depositor's agreement might allow you to notify customers of a change in terms, if you cannot notify them, does that still mean you have an enforceable written contract for these fees.

(3) A holder may not impose with respect to property described in subsection (1) any charge due to dormancy or inactivity or cease payment of interest unless all of the following requirements are met:

(a) There is an enforceable written contract between the holder and the owner of the property providing that the holder may impose a charge or cease payment of interest.
(b) For the property of a value in excess of $2.00, the holder, not more than 3 months before the initial imposition of those charges or cessation of interest, has given written notice to the owner of the amount of those charges at the last known address of the owner stating that those charges will be imposed or that interest will cease. However, the notice required in this subdivision need not be given with respect to charges imposed or interest ceased before March 28, 1996.
(c) The holder regularly imposes such charges or ceases payment of interest and does not regularly reverse or otherwise cancel them or retroactively credit interest with respect to the property.

Thank you, Randy.
We have just seen recently a range of fees that other financial institutions are charging, from $50 to over $300.00 for escheatment. We were surprised to see that amount, and thought it was high, and that is what prompted my question.