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Home >> Accounts >> Checking Accounts
Bank Closes All My Accounts: I'm Mad!
My bank sent me a letter today stating that they are closing my account. They did not give me a reason other than, "according to the terms and conditions, we may close your account at anytime". I have had the same account for three years and only five bounced checks, a year and a half ago. I am very angry. I spoke with the manager and got the same response. Could you please tell me a valid reason that a bank would close not only my checking account, but my savings account?
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 Banks can, as your bank has said, close accounts at any time, subject to any notice requirements that they may include in their deposit contracts. Some reasons for which a bank might decide to close out all of a customer's deposit accounts (any or none of which may apply in your situation):
- Customer's deposit or cashing of a fraudulent check
- Repeated deposits of checks that have been returned unpaid
- Transfer of funds back and forth between accounts in two or more banks, in a pattern suggestive of a check fraud often referred to as "kiting"
- Repeated or excessive overdrafting of an account
- Residence or business address outside the bank's designated service area
- Other reasons
A bank is not obliged to reveal the reason for its decision to end a customer relationship. In many cases, we would advise a bank, in fact, not to elaborate on its reasoning.
Published on BankingQuestions.com 10/06/10
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