If you haven’t received an “account closed letter to customer” before, you might not know what to expect or what to do next.
In this article, we’re going to help you navigate the steps of what to do when you’ve been informed that you have a closed or blocked account.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Account Closed Letter to Customer
- What to Expect When the Bank Closes Your Account
- Account Closing Letter [Example Language]
- What to Do After the Account Is Closed?
- Frequently Asked Questions
- Ready to Explore Your Options?
Account Closed Letter to Customer
“We are regretful to inform you that your account with our bank has been closed….”. Shocked to receive such a letter from your bank?
An account closed letter to a customer is generally issued to the customer for various reasons. Account closure can happen to anyone, even when it’s least expected.
One of the most typical reasons for an account closure would be a dormant account, using your account very little or not at all, confirmed financial crime offenses, misuse of the account for prohibited activity, or bounced checks or overdrafts.
If the customer has an available balance, the letter might provide more customer information on how to withdraw your funds
What to Expect When the Bank Closes Your Account
It’s not mandatory for the bank to inform you about closing your account. However, some banks may take spets to notify you that it has closed your account.
That said, banks are required to return your available balance minus any unpaid fees or charges. If the account was closed due to confirmed fraudulent activity, funds might be seized or frozen.
It is crucial to note that any negative balance or overdrafts will be transferred to the collection agency if the account is closed because of outstanding dues. A collection agency is responsible for getting the pending payments. Also, the non-payment will be conveyed to the Consumer Financial Protection Bureau (CFPB).
It will impact your credit rating for a couple of years. So, if default or non-payment has been the reason for the bank account closure, customers should clarify it with the bank immediately.
Account Closing Letter [Example Language]
Account closure letters usually start with a regretful message about bank account closure. This is then followed by the account details, including the title and account number/IBAN. The bank might also provide the contact details of the relevant person for further queries.
Example Account Closure Language:
“After reviewing your account 453****8760, we’re sorry to say that we can no longer offer you our services. Please liquidate and transfer all remaining funds from your account by DD/MM/YYYY.”
What to Do After the Account Is Closed?
After you have been notified that your account has been closed, there are steps you can follow to help streamline the process:
- Get in touch with the bank authorities and determine the precise reason for the account closure and the possible steps you can take to remedy the situation (if any).
- Keep a record of all communication, whether carried out on the telephone or in person, you must have a complete record. It might help support any future actions.
- Hold direct deposits, recurring payments, or check payments. This simple step can save you from additional charges from the bank. Doing this can also help by reducing any additional complications that can come from extra payments that are denied.
- You’ll need to start thinking about your next bank account. That said, in order to open successfully you will need to confirm why your account was originally closed, as this could impact future opening as well.
Frequently Asked Questions
Below are two of the most common questions that we receive from people asking about account closed letters to customers. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Do Clients Have Any Recourse Against the Bank?
If you believe the bank is at fault, the customers can file a complaint with the appropriate authority.
Can You Open Another Bank Account After You Had an Account Closed?
Yes, generally, people can open another bank account after an account has been closed. That said, account holders whose accounts have been closed for legal or financial reasons may find it difficult to open as they could be flagged by a shared compliance database.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.