If my account is negative at the bank do they have to send me a letter before they close it?
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Many banks notify their customers before closing out overdrawn accounts. The notice may be required by their deposit contract language, or they may do so to avoid future problems. However, some deposit contracts provide that the bank may close out an account without notice.
It is good business practice for a bank to send a notice to a customer prior to closing an overdrawn account, so that the customer may deposit money to take care of the overdraft. The notice would also be an opportunity to inform the customer that the bank reports charged-off accounts to a credit reporting agency such as ChexSystems. That might prove to be an incentive to address the overdraft and possibly avoid the negative report.
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Many banks notify their customers before closing out overdrawn accounts. The notice may be required by their 