As with most financial institutions, Bank of America has guidelines it uses to determine whether an account should be closed or not.
These guidelines are different from Bank to Bank and can vary based on certain conditions in your area, the type of account you have, and even the amount you deposit in your account.
While banks are legally allowed to close accounts at their discretion, you should take note of some common reasons why Bank of America may close your account before deciding where to store your money.
Knowing these reasons can help you make abreast decisions about where to put your money so you don’t lose access to it.
Key Takeaways:
- Bank of America closed your account due to not depositing enough money into the account.
- Due to Duplicate accounts, the Bank of America closes a fund to help keep your other account secure.
- Fraud is one of the main reasons why Bank of America closes down accounts.
- Sometimes disputes can cause a bank to close your account.
- Bank can close your account if you have an outstanding debt with another financial institution.
- They can close your account if you are transferring your money too often.
- Due to any criminal conviction, Bank of America can close your account.
- Call the Bank of America and ask why they closed your account and what needs to happen for it to stay open.
Bank Of America’s 7 Reasons For Closing Your Account
Here are 7 reasons Bank of America can close your account.
1) Not Enough Funds In Your Account
One of the most common reasons for closing a Bank of America account is that you have not deposited enough money.
If you are withdrawing more than you are depositing, or if there are insufficient funds in your account, then it is likely that the Bank will close your account.
There may be some constraints on how much you can deposit each month. Banks sometimes impose restrictions on how much they allow customers to deposit.
2) Duplicate Accounts
You may have duplicate accounts with the Bank of America, and it wants to remove them to help keep your accounts secure. However, if this is not the case, then there might be other reasons for closing your account.
For instance, the Bank might close your account because you’re too old. Or they might think you don’t live at the same address anymore.
3) Fraud Concerns
Fraud is one of the main reasons why Bank of America closes down accounts. If the Bank suspects that your account has been compromised in any way, they might close it down to protect you and your money.
For example, if someone tried to access your account but failed 10 times in a row, the Bank would suspect something was wrong.
Banks like Bank of America have their own set of standards in the matter of who they do business with.
To keep you safe from fraudsters, they might decide to shut down your account until they can verify what happened. It’s also possible for banks to suspend or close your account for other reasons as well.
So even if your current institution doesn’t do business with customers in another country, you could be denied a new account at another bank due to the history on your record.
Banks must have some control over who can get an account with them and not just give out accounts indiscriminately.
4) Disputes
Sometimes disputes can cause a bank to close your account. Disputes are when you and the Bank disagree on something.
They could be about: what you owe; where you live or have lived; who has access to your account, or how much funds you should have in your account.
The best way to avert disputes is to undergo all the terms and conditions before signing up for an account, which is why you must read the fine print! It’s also essential to not overdraft on your account and keeps track of transactions using a budgeting app like Mint.
Finally, if you ever get into trouble with your Bank, always call their customer service hotline first so they know there is a problem and so they don’t close your account without warning.
5) Outstanding Debt With Another Financial Institution
Bank can close your account if you have an outstanding debt with another financial institution. It is because the Bank does not want to be liable for any payments due on your behalf.
For example, if you were using a credit card issued by Bank of America and there was a balance remaining on your card when the card was closed, then Bank of America would need to pay off the balance before closing your account.
6) Too Often Transfers
Bank of America is not a bank you want to deal with if you transfer your money too often. They have a limit for how many transfers you can make in any one month. If you exceed this limit, they will close your account and seize the remainder of your balance.
The Bank also closes accounts that have been inactive for an extended period. Closing an account for inactivity may take an average of three or more years. Bank of America will usually contact you before the account is closed to ask if you want to complete it.
7) Criminal Conviction
Some people think a criminal conviction is the only reason a bank might close your account, but that’s not true.
For example, if you regularly overdraw your checking account and don’t pay off the balance in full, the Bank can close your account for this overdraft privilege abuse.
One common reason why banks close accounts are to protect their customers from fraud. Fraudsters sometimes use someone else’s information to open an account, which could cause problems like withdrawals or deposits. If you notice fraudulent activity on your account, contact the Bank immediately.
Is There Anything You Can Do When Your Bank Closes Your Account?
In recent years, many banks have closed accounts for customers who are not loyal to their brands. You may be wondering how to proceed if your bank closes your account.
Don’t worry; we’ve got you covered. There are several tasks that you can do when this happens.
- Call the Bank of America and ask why they closed your account and what needs to happen for it to stay open.
- Look at your statements and balance history to see if there’s anything suspicious there.
- Open an account with a different bank as early as possible so you don’t lose any money or time while waiting to transfer funds from one place to another.
- Learn more about banking fraud so you’re prepared the next time it happens!
If you notice strange activity coming from your account, like a purchase being made without your knowledge, call the Bank at 00 1 315-724-4022 immediately. It could save you from getting scammed by someone else later on.
What Can You Do To Avoid Your Bank Closing Your Account?
Only use your credit card for emergencies. If you go into debt, try to pay off the balance as soon as possible.
Paying off your balance on time every month will help you stay in good standing with your Bank and maintain a good credit score.
You can also call the customer service line before making a large purchase to ensure there are no restrictions on using the card, such as being maxed out or not having enough available credit left.
If an item is denied because of these reasons, don’t worry too much about it, banks will usually tell you what’s wrong so that you can fix the issue.
When a company denies your purchase because they believe it’s fraudulent, they may ask for more identification information like a driver’s license or social security number.
In this case, provide them with the necessary information, including mailing copies of these documents.
In some cases, banks have the right to close accounts without notice if they find evidence that someone has been committing fraud or another illegal activity against them.
It could be due to unauthorized withdrawals from someone else’s account. If this happens, contact the Bank immediately and file a police report.
Never share your debit card PIN code with anyone to avoid any other issues! Always remember that only you know the secret code.
And always protect your cards by keeping them away from people who may steal your sensitive information, such as friends or roommates.
If a family member steals money from your account (such as if they’re addicted to drugs), then talk to the Bank directly.
They’ll help get things back under control. For example, if you’ve shared your banking password with someone, you should change it immediately.
Or if you think a friend took money from your account by withdrawing cash at an ATM and paying themselves back, contact the Bank as soon as possible and let them know.
They’ll freeze the person’s access to your account until they can sort out what happened – be aware that once this happens, you won’t be able to withdraw any cash until everything is resolved.