A bank client claimed on Reddit that their bank account was terminated without notice. Customers can take many steps to recover their cash.
The client stated on the Reddit post that their bank sent them an email before closing all three of their accounts.
“I had to get all of the money from them within six days,” the consumer explained.
They didn’t say which bank had shut down their accounts.
“I called them to ask why this is happening, because it sounds like a pretty big deal to me,” the client stated in an email.
“[I] was told that I must have breached some policy; however, they were not able to say which one.”
According to The New York Times, there has been an uptick in bank account closing activity among American clients.
In 2021, banks reported a record number of suspicious activity reports (SARs).
In 2021, financial institutions submitted 1.4 million SARs, up from 839,314 in 2014.
According to The Motley Fool, there are three steps to re-allocating your money.
Customers should first determine why the bank closed the account. Bank agreements frequently include wording that allows financial institutions to close accounts with little or no notice. Customers can obtain an explanation by calling their bank or visiting their local branch.
Second, clients should settle any outstanding balances on their accounts. Customers can reactivate their accounts if all amounts are settled, according to the magazine. Customers should switch to another bank if the bank refuses to reopen following these three procedures, according to the website. Customers who believe their accounts have been canceled incorrectly should notify the Office of the Comptroller (OCC).
You may make an online complaint with the OCC here.
The US Sun reported on additional bank account closures; this TikToker claims they were not notified prior to the closure.
Steps to Take When Your Bank Shuts Down Your Account
A bank may close an account for a variety of reasons. They are as follows:
- The account is no longer active.
- The account is currently in the red.
- The bank suspects you of defrauding them.
- You have an overdraft fee surplus.
- You violate a bank policy.
It may surprise you that banks can shut an account for any reason and are not compelled to notify you. Assume you have numerous bank accounts but only use one of them on a regular basis. It’s likely that you won’t realize the account is closed until you try to retrieve cash.
If you have money in the account when it is closed, the bank must refund it to you, less any outstanding costs. If an automatic deposit is made into that account after it has been terminated, the monies must be refunded as well. The bank will usually send a cheque.
If your account has been dormant for years and the bank is unable to locate you, the money may have been forwarded to your state’s unclaimed property authority. Recovering the money is as simple as calling the proper authority and showing proof of your identification.
When a bank shuts an account due to an unpaid amount or suspected fraud, it reports it to ChexSystems. Banks regularly seek a ChexSystems report before enabling a new client to create an account, making opening a new account with another bank difficult.
If a bank account is closed owing to an unpaid amount, the debt may be sent to a collection agency. Once sent, the activity is recorded with credit agencies and can have a seven-year impact on your credit score.
However, there are numerous bits of good news here. The first is that once a year, you are entitled to a free copy of your ChexSystems report. Examine it carefully, and if you notice any errors, contact ChexSystems. In addition, once you have paid off any outstanding amounts with your previous bank, you can request that the information be deleted from your ChexSystems report. Finally, some banks do not use ChexSystems to screen new clients.
Changing banks might take some time. If you desire to continue with your bank after an account has been closed unwillingly, there are three actions you may take:
- Learn why the account was closed. Call your bank and ask them why they decided to close the account.
- Pay the remaining amount. If the account was closed owing to an outstanding debt, determine how much it is and pay it off.
- Request that the account be reopened. The bank may be willing to reactivate your account if your amount is addressed. If it is unable to do so, you may choose to consider creating a new account with the same bank. If your bank refuses to let you create a new account, it’s time to find a new financial institution.
If you feel your account was canceled in error, contact the Office of the Comptroller’s (OCC) Customer Assistance Group. Ideally, you will never be forced to close a bank account. However, if this occurs, you have choices.
