It is, however, in one of your agreements that they reserve the right to re-open a closed account in order to receive the deposit. When closing a bank account online, both account holders may be asked to log in separately. If the bank used section 203.7(b)(3) to consider accrued but unpaid interest as forfeited at the time the account was closed, the reopening of the account must be treated as a new account for disclosure purposes (see Comment 1(iv) to section 230.4(a)(1) in the Regulation DD Commentary. If you’re closing a joint bank account, you can do that without permission from the other account holder. Reasons banks close accounts may include inactivity, low balances and instances where their customer's actions have been deemed as posing a specific risk to the institution.These risks include monetary losses, as well as the potential of fraudulent activity. Request for Reopen Bank Account. The consequences of having your bank close one of your accounts can stay with you for a long time. Businesses that provide bank accounts are generally entitled to close them – just as their customers are. That is you may close a CC account with bank XYZ, and later call to reopen, but the reality is a brand new account is opened. By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. However, banks also can close accounts at their discretion, even if the owner has kept the account in good standing. Once you’re at a zero balance, just visit your branch (with ID handy) and fill out the appropriate form. If your account is closed due to excessive overdrafts, you may be able to reopen it by bringing the account balance positive and paying any associated fees. The score change is likely nothing to do with open or closed status. My bank account number is 42534376786545 which have present status as inactive as there has not been any transaction since last one year. You can reactivate an inactive account by initiating new transactions, and if your account is closed for dormancy, you can typically reopen it by contacting your local bank branch. Yes, a bank or credit union can close your account without your permission. A Closed Account Can Stay With You. And you shouldn’t usually close an account without giving reasonable notice. If your bank closed your account, you might be panicking, but try to stay calm and call your bank's customer service number to find out what's going on. You shouldn’t close an account because of unfair bias or unlawful discrimination. In many instances the bank will report the fact that they’ve closed your account (and that circumstances that led … The bank/credit union closed my checking account even though I did not want them to. In your case your ex-wife is perfectly within her rights to open a CC account with the institution in question. But you should treat your customers fairly. Yes, it can be reopened. Usually accounts are closed because you are significantly overdrawn, have had frequent overdrafts, or have bounced a number of checks. Regardless, it should not have had a negative impact on your score. Credit card accounts and other loans are not generally “reopened”. Is it legal for a bank to reopen a closed account without notification? It is respectfully stated that I am a bank account holder in your branch. They can either refuse the transfer / return the money, or they can optionally re-open your account so they get money (makes more sense for them). The removal of the delinquency would only be positive, and change of open/closed status is not a scoring factor. Banks may reopen Closed Bank Accounts under certain circumstances. The Manager Bank. Can the bank/credit union do that? If the account is revolving, yes, it can be reopened and then closed again by the creditor. - Answered by a verified Lawyer. We use cookies to give you the best possible experience on our website. First published on 10/22/07