Bank of America Closed my Account with Money in it

If you’re wondering why Bank of America deactivated my account, there are a few possible explanations. You agreed to several rules and guidelines when you opened your bank account. If a law is broken, the bank may close your account. Check with your bank’s customer service representatives to determine why your account was closed. They should be able to guide you through the following steps.

Unexpectedly closing your account could result in late payments for bills linked to it and may make it more challenging to open an account elsewhere. However, taking steps to mitigate the damage can make moving your money to another bank easier.

Why does the Bank of America close an account?

The first sign that your bank account has been closed is unusual inactivity. Things you could do before or notifications you used to receive are no longer available. According to the rules governing banking operations, Bank of America must send you a message informing you of the closure of your account. Sometimes they do, and the client may not receive the notification.

Whatever the situation, you’ll be unable to carry out transactions, ship, or get hold of money. Account and service updates may be discontinued. If you have money in the bank, the bank is forced by law to refund you in full.

Reasons, why and when does bank of America closes an account

Let’s look at some of the most common reasons why Bank of America may shut your account on short notice.

It is important to note that the bank’s decision to shut down your account may be influenced by more than one factor. The following are some of the most common reasons why Bank of America closes accounts.

Inactive account

Assume you haven’t written a check in the last two years and have only made two debit card transactions over the past three years. Because of the lack of regular activity, the bank may decide to close the account. Typically, it takes several years of scant minor time for a bank to close an account. As a result, Bank of America may believe that you do not need to maintain the account.

Bank of America will usually contact you before this is finalized to ask if you want to close the account. Bank of America will usually contact you before this is finalized to ask if you want to close the account. If they do not hear from you after an extended period, they will close it and return the funds to the government.

Zero balance

The bank may decide to close the account if it has been inactive for an extended period, the bank may decide to close it. Every bank has guidelines for how much money should be in your bank holdings.

Simply because an account has no minimums does not mean it should be left empty for days or months. The duration will vary depending on your bank and its procedures. Another risk is that any monthly fees will reduce your balance to zero. Hence, keeping track of your bank account balances is critical.

Exceeding transfer limits

You may be closed out if you repeatedly exceed your bank’s Regulation D transfer limit.

Overdrafts or defaulted checks

A bounced check occurs when your check amount is less than the amount written on the review or statement. You will probably lose access to the account if you bounce checks repeatedly.

Overdrafts occur when your bank covers transactions despite insufficient money in your account. Your bank will most likely not close your account until there is enough money in it to cover the overdrafts and any overdraft charges. If this occurs, the bank may close your account. Overdrafts occur when you write a check, use a debit card, or make an ATM transaction that causes your account balance to fall below zero.

Monetary risks

If your operation risks the bank, your account may be closed. That could mean withdrawing more money than you have in your account, in which case you’ll have to pay the difference. It could also be making purchases from source id.

Fraud protection

Bank of America, like many other financial institutions, has security checks and infrastructure in place to prevent fraudulent account activity. However, suppose suspicious activity is detected, such as an unauthorized login, unusual withdrawals, or other activities that may endanger the account owner or the bank.

In that case, the account will be closed or placed on hold. Fortunately, this is frequently resolved with a simple phone call or taking a trip to your local bank branch.

Is your bank account closed? Things You Must Do Now

Learn what steps to take if your bank unexpectedly closes your account.

Investigate Why the Account Was Closed

Typically, your bank will send you a notice in writing that your account will be closed, but they may or may not explain why.

Suppose the bank is vague about the details. In that case, you should check up to get a conclusive response on why they’ve decided to close your account and if there’s anything you can do to prevent it.

Stop Automatic Bill Payments or Direct Deposits

If your paycheck is being instantly placed into your now-closed account, notify your employer as soon as possible. Waiting to tell payroll about the opportunity can significantly lengthen the time it takes to get paid because the bank must give cash back, which can take five to ten business days.

You should also suspend your automatic bill payments and make alternate payment arrangements until you can open a new bank account.

Get a Hard Copy of Your ChexSystems Report

ChexSystems is the company to which banks report negative account information. Having a black mark on your record can significantly reduce your chances of opening a new account. 

If you notice something misleading or false, you have the right to file a dispute to have the matter investigated again.

Make a formal complaint

If you think your account was closed in error, file a complaint with the federal Comptroller’s Office’s Customer Assistance Group.