My bank of almost four years closed my checking account due to overdrafts. Both of my paychecks as well as my monthly social security benefits are set up to direct deposit into my now closed account. Is there any way that my bank will reopen my account? Is there anything I can do to encourage them to reopen my account? If they don't reopen my account what will happen to the direct deposits?
You can ask that they reopen your account. If they feel you may again write checks without having sufficient funds though, they have the right to refuse. They believe your relationship with them will cost them money either because of the processing costs, or the fact that you will not be able to repay any fees or checks paid, in a timely manner. You will have to convince them otherwise.
If they close your account and a deposit is received, one of two things will happen. They'll allow the deposit to force the account back open, or they'll return the deposits. In the case of the latter, you'll have to go back to those who issued the checks and have them deposit to a different account (another account or a new account) or send you a check to cash. Even with a check, you'll likely find it easier and less expensive to cash if you have a checking or savings account at a bank.
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You can ask that they reopen your account. If they feel you may again write checks without having sufficient funds though, they have the right to refuse. They believe your relationship with them will cost them money either because of the processing costs, or the fact that you will not be able to repay any 