Bank of America Warns Customers About Account Closures Due to Inactivity
- Abhinand PS
.jpg/v1/fill/w_320,h_320/file.jpg)
- Mar 29
- 4 min read
Bank of America has recently emphasized the importance of maintaining active engagement with customer accounts to prevent them from being classified as "abandoned," which can lead to account closure and the transfer of funds to state custody under escheatment laws. This article delves into the reasons behind account closures, outlines steps to maintain account activity, and provides guidance on reclaiming escheated funds.Newsweek+4The Economic Times+4Music + Essentials+4
Understanding Account Inactivity and Escheatment
When a bank account remains inactive for a prolonged period—typically around three years—Bank of America may designate it as "abandoned." In such cases, the bank is legally obligated to transfer the account's funds to the state's unclaimed property division in accordance with escheatment laws. These regulations are designed to protect unclaimed assets and ensure they can eventually be returned to their rightful owners. The Economic TimesThe US Sun
Types of Accounts Affected
The inactivity policy applies to various account types, including:Bank of America+4Music + Essentials+4The Economic Times+4
Checking and savings accounts
Certificates of Deposit (CDs)
Individual Retirement Accounts (IRAs)
Safe deposit boxesMusic + Essentials
Uncashed cashier’s checksMusic + Essentials
Investment accounts such as stocks and bondsMusic + Essentials+1The Economic Times+1
It's crucial for account holders to be aware that inactivity across these various account types can lead to them being marked as abandoned. The US Sun+2The Economic Times+2Music + Essentials+2
Preventative Measures to Keep Your Account Active
To avoid the complications associated with account inactivity, consider implementing the following strategies:
Regular Account Access: Log in to your online or mobile banking account periodically to demonstrate activity.The Economic Times
Transaction Activity: Perform routine transactions such as deposits, withdrawals, or transfers.Music + Essentials
Automatic Payments: Set up automatic bill payments or direct deposits to ensure ongoing account usage.Music + Essentials
Information Updates: Keep your contact information current to receive important notifications from the bank.
Prompt Check Handling: Deposit or cash any checks promptly to prevent them from becoming stale.
By actively managing your account through these actions, you can prevent it from being classified as inactive or abandoned.
Steps to Take if Your Account Is Deemed Abandoned
If you receive a notification indicating that your account is at risk of being classified as abandoned:Diario AS+3The Economic Times+3The US Sun+3
Immediate Contact: Reach out to Bank of America promptly to confirm your account's status and understand the necessary steps to reactivate it.
Follow Instructions: Adhere to the guidance provided in the bank's notification to prevent escheatment.Diario AS+3The Economic Times+3The US Sun+3
Maintain Documentation: Keep records of all communications and actions taken regarding your account status.
Taking swift action upon receiving such notifications can help you retain access to your funds and maintain your account's active status. The Economic Times
Reclaiming Escheated Funds
If your funds have already been transferred to the state's unclaimed property division:The US Sun
State Contact: Identify and reach out to the appropriate state agency responsible for unclaimed property.
Claim Submission: Submit a formal claim, providing necessary identification and proof of ownership.The US Sun
Process Adherence: Follow the state's specific procedures to reclaim your funds, which may vary depending on jurisdiction.
While reclaiming escheated funds is possible, the process can be time-consuming, making proactive account management the preferable approach. The US Sun
Conclusion
Maintaining regular engagement with your Bank of America accounts is essential to prevent them from being marked as abandoned and subjected to escheatment. By understanding the implications of account inactivity and implementing proactive measures, you can ensure continuous access to your funds and avoid the complexities associated with reclaiming escheated assets.
Frequently Asked Questions (FAQs)
Q: How often should I access my Bank of America account to prevent it from being considered inactive?
A: It's advisable to log in and perform transactions periodically, at least once every few months, to demonstrate account activity.The Economic Times+1Music + Essentials+1
Q: Does setting up automatic payments count as account activity?
A: Yes, automatic payments and direct deposits are considered valid forms of account activity.
Q: What should I do if I receive a notice about potential account closure due to inactivity?
A: Contact Bank of America immediately to address the issue and follow the instructions provided to reactivate your account.
Q: Can I reclaim funds that have been escheated to the state?
A: Yes, you can reclaim escheated funds by contacting your state's unclaimed property division and following their claim process.
Q: Are there fees associated with maintaining an active account?
A: Standard account fees may apply, but regular activity helps prevent additional charges related to inactivity or escheatment processes.
Bank of America Warns Customers About Account Closures Due to Inactivity
Sources
Comments