Call Kurtis: Can My Bank Change my Free Account to a Fee Account?

Banks offering free checking or free safety deposit boxes for life it used to be a big draw to get your business. But when an El Dorado Hills viewer says his bank was going to start charging him, it was time to call Kurtis.

"We've got bills from back in the 70's out in the garage. We save records," said Jim Jowski.

One of the records He saved all this time is a 1991 certificate for a free safe deposit box for life from Security Pacific National Bank in Folsom. He won it in a school auction.

"When we leave town or die, you can have the box back," said Jowski.

US Bank has since taken over the branch and now wants to charge him $35 a year for his free box.

"You can't go giving somebody something and take it back," said Jowski.

Can a bank just change a free account to a fee account? We checked with the FDIC, which says if a bank changes hands, the new company can change your terms and start charging for those free accounts.

"They're not going to come in and change the terms of your account on day one, but like any bank, they do have the right to change your account terms with proper notification," said Beth Mills, of the California Bankers Association.

Mills says new laws limit the fees banks can charge you, so "free for life" products are becoming less common.

If you don't like the changes Mills suggests talking with your feet.

"Like anything else, shop around," said Mills.

We contacted US Bank which issued us this statement:

Last year, we notified customers of a change in policy that was specific to those customers whose only connection to the bank was that they had a safe deposit box that they were receiving for free.

By having a safe deposit box that had no rental payment and no other relationship with us, these accounts fell into the state's definition of being inactive or abandoned. Banks are required by law to turn over any account (or the contents of the safe deposit box) to the State of California as unclaimed property after three years of inactivity.

In order to prevent that from happening, U.S. Bank notified customers last year that we would be requiring them to pay rent on the safe deposit box, or open an account and make a transaction over the course of a year that would qualify the customer for a free or reduced rent on the safe deposit box.

My understanding is that this customer did not wish to open an account, which is why we asked them to pay the standard rent for a safe deposit box. To ease the transition, the branch provided one additional year of a free safe deposit box for this customer.

Unsatisfied, Jowski refuses to open an account at US Bank and says the fight's not over.

"I suppose that the Sacramento Superior Court system is probably going to have another case on their docket," said Jowski.

Some banks who offered free for life deals and are still around have listed in the fine print they can change the account terms at any time.