Is Bank Of America Canceling Accounts? Here’s What To Know And Why

Bank of America is informing customers that their accounts may be closed if they haven’t been used for an extended period.

“If you have not accessed your account for an extended period (typically 3 years or more), you may receive a letter from us letting you know your account is considered abandoned and may be turned over to the state under escheat laws,” Bank of America stated, according to Penn Live.

Why is Bank of America closing customer accounts?

According to Bank of America, inactive accounts will be closed because certain states have their own escheatment law. The bank describes escheatment as “the process of reporting and remitting abandoned/unclaimed property to the appropriate state agency for custodial safekeeping,” per Penn Live. In Pennsylvania, for example, the law states that banks, utilities, medical institutions and other similar entities have to report and turn over assets that are lost or abandoned for an extended time.

“The legislation of each state defines when an account is considered inactive and at what point we must transfer it to the state,” the bank stated, per Tododisca.

The policy applies to checking and saving accounts. Other assets such as IRAs and Certificates of Deposits, as well as uncashed cashier’s checks, securities, stocks, and safe deposit boxes may also be affected.

What do customers need to do to keep their Bank of America accounts open?

Bank of America has informed customers that they need to follow the instructions on the letter they receive “to contact the bank and prevent escheatment.” Customers are advised to log into their account and use it on a regular basis if they want to avoid losing access. The bank is reminding customers to regularly make transactions, check their balance frequently, keep their personal information updated and cash checks to keep the account open.