"Inactivity fees" are due to a French legal requirement called "Eckert law", which applies to French banks, credit establishments and payment services companies.
So, what are those inactivity fees? 🤔
Eckert law (2008) requires credit, banks and all payment services companies to check that their clients were still able to use their accounts after some time. If it wasn't the case, the accounts would have to be closed.
What we mean by "inactivity" 📱
For current accounts, French law says that "inactive" users are users who didn't perform any operation on their account over 12 consecutive months.
Lydia considers that users are "inactive" when they haven't opened nor used the app or contacted Lydia in 12 consecutive months.
Rest assured: we warn you twice 📬
If you don't open the Lydia app in 12 months, you will receive two emails: the first is sent on the day of the 12th month, the second is sent 7 days after the first one. Both emails invite you to either:
- Reactivate your account simply by replying to the email or by opening/using the app at least once;
- Close your Lydia account if you ask for it by email.
How much are these “inactivity fees”? 🧐
If you still haven't replied to those emails on the 13th month, you'll receive a final email informing you that Lydia will debit inactivity fees. There are two scenarios:
- If you don't have money on your Lydia account, Lydia doesn't charge any fees;
- If you have money left on your current account, Lydia is legally obliged to transfer this money after 10 years to the French "Caisse des Dépôts et Consignations" and to close your account. You will have 20 years to ask for your money back. As this procedure has a cost for Lydia, Lydia debits "inactivity fees" before doing so. Its amount is strictly capped by French law. Current inactivity fees' amount can be checked on our Pricing & Limits page.