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HD 2498

An Act relative to inactive bank account fees

194th Legislature (2025-2026) Introduced by Todd Smola

Massachusetts bill restricts fees financial institutions can charge on inactive bank accounts to protect consumers from unexpected charges depleting dormant balances.

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WeVote Research Nonpartisan
Bill Summary · HD 2498

Legislative bill overview

HD 2498 addresses fee practices related to inactive bank accounts in Massachusetts. The bill restricts or regulates fees that financial institutions can charge on accounts that have had no customer activity for extended periods. This legislation aims to protect consumers from unexpected charges on dormant accounts.

Why is this important

Many consumers maintain inactive accounts for various reasons—emergency funds, old employer accounts, or forgotten deposits—and may face escalating fees that deplete balances without their knowledge. Regulating these fees prevents financial institutions from profiting off customer inattention and protects vulnerable populations who may not monitor all their accounts regularly.

Potential points of contention

  • Bank profitability impact: Financial institutions may argue that account maintenance costs justify fees and that restrictions limit their ability to offset administrative expenses for inactive accounts
  • Definition ambiguity: Disagreement over what constitutes "inactive" (no transactions for 6 months? 1 year?) and which account types should be covered could create compliance challenges
  • Unclaimed property laws: Potential overlap with existing state unclaimed property statutes that already govern dormant accounts, raising questions about regulatory redundancy and coordination

Compiled from official sources — confirm details with the bill’s official record.

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