Notifying Passbook Account Holders Of Their Rights Under The "18-65" Law
Banks are prohibited from imposing any fee, charge or other assessment against the savings account or checking account of any persons sixty-five years of age or older or eighteen years of age or younger under Mass. Gen. Laws chapter 167D § 2. However, a reasonable charge, as determined by the Division of Banks, may be assessed against any such account when payment has been refused because of insufficient funds on a check drawn thereon. It is the position of the Division that the requirement for providing an annual mailing of a notice under Administrative Bulletin 24-2 only applies to passbook accounts for which banks provide periodic statements. A separate annual notice mailing is not required for passbook accounts which do not have a periodic statement. However, banks are required to provide sufficient notification of the law to passbook account holders. Affixing a label on passbooks along with the conspicuous posting in all bank offices, is an acceptable option for banks to demonstrate compliance with the statute and the notice requirements set forth in Administrative Bulletins 24-1 and 24-2.