Bank of America customers are subject to having their accounts closed and losing access to their funds, but this is not a new practice.
The bank has previously confirmed that it can and will close accounts if they are deemed inactive due to state escheatment laws.
The financial institution confirmed that customer accounts may be flagged as abandoned if they remain inactive for an extended period of time — typically three years or more, according to the bank’s FAQ page.
As a result, customers’ checking and savings accounts, Individual Retirement Accounts (IRAs), Certificates of Deposit (CDs), uncashed cashier’s checks, stocks and safe deposit boxes could be impacted by possible account closure.
A spokesperson for Bank of America confirmed to PIX11 that this is not a new policy. “There has been no announcement, no warning, no changes at Bank of America. Every bank is required to follow state laws on what to do with abandoned accounts,” the spokesperson said on Friday, March 28.
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But before the bank would close the account, it may issue a letter to the customer informing them that their account is considered abandoned, and the account “may be turned over to the state under escheat laws,” per the FAQ page. “You will need to follow the instructions on your letter to contact the bank and prevent escheatment.”
If the customers do not take further action after being alerted, the funds from their accounts “may be turned over to the state under escheat laws,” per the FAQ.
“Escheatment is the process of reporting and remitting abandoned/unclaimed property to the appropriate state agency for custodial safekeeping,” per the Bank of America website. “Each state has laws that govern when accounts are considered inactive and/or abandoned and when we’re required to send a customer’s property to the state.”
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To prevent account closures, the bank urges customers to stay engaged with their accounts by regularly logging into their digital accounts, checking balances and using debit cards.
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A representative for Bank of America did not immediately respond to PEOPLE’s request for more information on Friday.
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