Bank of America customers across the United States are facing potential account closures if they do not adhere to specific activity requirements set forth by the financial institution. As the second largest bank in the U.S., serving approximately 69 million consumers and small business clients, Bank of America has recently issued warnings regarding the closure of accounts deemed inactive under state escheatment laws.
The bank's policy states that accounts not accessed for an extended period, typically three years or more, may be classified as "abandoned." Once an account reaches this threshold, Bank of America may restrict access, notify the account holder, and ultimately transfer the funds to state custody in accordance with escheatment laws. This legal process mandates that financial institutions report and remit unclaimed or abandoned property to the appropriate state agency for safekeeping.
According to Bank of America, "If you have not accessed your account for an extended period (typically three 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." This warning applies to a wide range of financial products, including checking and savings accounts, Individual Retirement Accounts (IRAs), Certificates of Deposit (CDs), uncashed cashier's checks, securities, stocks, and safe deposit boxes.
Each state has its own regulations governing what qualifies as an abandoned account and the timeframe in which banks must surrender customer funds. For instance, states like Pennsylvania require financial institutions to report and transfer dormant assets after a specified period of inactivity. As Bank of America notes, "Escheatment is the process of reporting and remitting abandoned/unclaimed property to the appropriate state agency for custodial safekeeping."
In recent months, concerns have emerged that some accounts held by immigrants are being closed or frozen, allegedly due to documentation issues. Reports from media outlets like The Sacramento Bee and Miami Herald have highlighted cases where U.S. residents, including naturalized citizens, were asked to provide documents that were not previously required. Advocacy groups such as the California Reinvestment Coalition assert that these actions have adversely impacted numerous immigrants across the country.
Despite these allegations, Bank of America maintains that no changes have been made to their policy regarding customer information collection and account verification. However, the bank did not directly address individual complaints, leaving lingering concerns among advocacy groups and the public. Customers have taken to social media to share their experiences and call for greater accountability from the bank.
To prevent accounts from being flagged as inactive or abandoned, Bank of America encourages customers to take proactive measures. The bank advises account holders to log in regularly to check balances, make transactions, and update personal information such as phone numbers and addresses. Additionally, customers should cash checks or redeem CDs before their expiration and utilize mobile banking alerts to stay informed about account changes.
Bank of America has outlined several recommendations to help customers keep their accounts active. These include:
- Logging in regularly to check account balances and activity.
- Making occasional transactions, such as deposits or payments.
- Updating personal information to ensure the bank can reach customers if necessary.
- Cashing checks and redeeming CDs before they expire.
- Using digital tools to receive personalized alerts and monitor account status.
Customers who receive an escheatment notice are urged to respond promptly and follow the instructions in the letter to ensure continued access to their funds. Those whose accounts have already been escheated can reclaim their funds by following the state’s unclaimed property claim process, which typically involves providing proof of identity and ownership.
As banking increasingly shifts toward digital platforms, the importance of maintaining active engagement with financial accounts cannot be overstated. With physical branches closing across the country, customers must adapt to the changing landscape by staying informed and proactive about their banking activities.
In light of these developments, Bank of America’s policies regarding inactive accounts have come under scrutiny, particularly given recent technical issues that have affected account balances. The bank’s commitment to compliance with state laws and regulations is clear, but customers must also take responsibility for their account activity to avoid unexpected disruptions.
As the banking landscape continues to evolve, customers must remain vigilant about their financial assets and take the necessary steps to prevent their accounts from being classified as abandoned. Regular activity, awareness of account status, and prompt responses to bank communications are essential in safeguarding one’s funds in this increasingly digital age.
