Bank of America can close accounts: Is yours affected?

Bank of America customers are subject to having their accounts closed and lose access to their funds, but this is not a new practice.

The bank has previously confirmed that it can and will close accounts if they are considered inactive due to state laws.

The Financial Institute confirmed that customer accounts can be flagged as abandoned if they remain inactive for an extended period of time – usually three years or more, according to Bank’s FAQ page.

As a result, customers’ control and savings accounts, individual pension accounts (IRras), deposit certificates (CDS), unmatched cash controls, shares and secure deposit boxes can be affected by possible account closure.

A Bank of America spokesman confirmed to Pix11 That this is not a new policy. “There has been no announcement, no warning, no changes in Bank of America. Each bank must comply with state laws on what to do with abandoned accounts,” spokesman said on Friday 28 March.

But before the bank would close the account, it may issue a letter to the customer that informs them that their account is considered abandoned, and the account “can be handed over to the state according to the Escheat laws”, according to the FAQ page. “You must follow the instructions in your letter to contact the bank and prevent Escheatment.”

If customers do not take further action after being warned, funds from their accounts “can be handed over to the state according to the Escheat laws”, according to FAQ.

“Esphatment is the process of reporting and referring abandoned/unproven properties to the appropriate state agency for custody,” according to the Bank of America website. “Each state has laws that govern when accounts are regarded as inactive and/or abandoned and when we are required to send a customer’s property to the state.”

To prevent contest closures, the bank urges customers to stay involved with their accounts by regularly logging into their digital accounts, checking balances and using debit cards.

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A representative of Bank of America did not immediately respond to people’s request for more information on Friday.