Why Bank of America is Closing Some Accounts and What Customers Should Know

Recent reports have highlighted instances where Bank of America has closed customer accounts due to inactivity or other reasons. Understanding the bank's policies and the broader context can help customers manage their accounts effectively and avoid unexpected closures.

Account Inactivity and Escheatment Laws

Bank of America, like many financial institutions, is subject to escheatment laws that require banks to transfer unclaimed or abandoned property to the state after a specified period. If an account remains inactive for an extended period—typically three years—the bank may classify it as abandoned and initiate the escheatment process. To prevent this, customers are advised to regularly log in, check balances, update personal information, and conduct transactions. Responding promptly to any communication from the bank regarding account status is also crucial.

Other Reasons for Account Closures

Beyond inactivity, accounts may be closed for various reasons, including:​

• Suspicious Activity: Banks are legally obligated to monitor accounts for unusual or potentially fraudulent behavior. If an account is flagged for suspicious transactions, the bank may close it to comply with anti-money laundering and anti-terrorism financing laws. ​

• Policy Violations: Engaging in activities that violate the bank's terms of service, such as using a personal account for business purposes without proper authorization, can lead to account closure.

​Addressing Political and Religious Concerns

There have been allegations that Bank of America has closed accounts based on customers' political or religious beliefs. The bank has denied these claims, stating that religious or political views are not factors in account closure decisions. Nonetheless, such concerns have led to political scrutiny and calls for transparency in banking practices.

Steps to Prevent Account Closure

To minimize the risk of account closure:

• Maintain Regular Activity: Ensure your account remains active by periodically logging in, conducting transactions, and updating your information.
• Monitor Communications: Pay attention to any notices from the bank regarding your account status and respond as needed.​
• Avoid Suspicious Transactions: Be cautious with your account activities to prevent triggering fraud detection systems.​
• Understand Bank Policies: Familiarize yourself with the bank's terms of service and ensure compliance to avoid inadvertent violations.

While Bank of America has the authority to close accounts under certain circumstances, understanding the reasons behind such actions and proactively managing your account can help prevent unexpected closures. Regular engagement with your account and adherence to bank policies are key to maintaining a stable banking relationship.​