Bank of America cancelling accounts: How to prevent your account from being classified as 'abandoned'? Details inside
ByBhavika Rathore
Mar 28, 2025 11:52 PM IST
Bank of America clarifies reasons for labeling accounts as abandoned and offers guidance to customers on maintaining active status.
Bank of America has addressed concerns over accounts being mistakenly labelled as "abandoned," explaining the specific reasons behind the classification. The bank also outlined the steps customers can take to prevent their accounts from being flagged, offering guidance on how to maintain active status and avoid potential issues.
To prevent accounts from being labelled abandoned, Bank of America explained necessary actions customers should take.(Photo by Todd Kirkland / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
To prevent accounts from being labelled abandoned, Bank of America explained necessary actions customers should take.(Photo by Todd Kirkland / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
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Bank of America explains cancelling accounts
As the second-largest bank in the U.S., Bank of America serves around 69 million consumers and small businesses, offering essential banking services like credit cards, home and auto loans, and checking and savings accounts. However, according to their official website, customers who fail to access their accounts for extended periods—typically three or more years—risk having their accounts classified as inactive or abandoned property.
Bank of America is required to follow specific protocols when dealing with abandoned accounts, which could be deactivated if customers don’t take the necessary actions. To alert users, the bank may send a warning letter, notifying them that their account is at risk of being turned over to the state under escheatment laws if inactivity continues.
When any such account is turned over by the bank, the funds will be transferred to the unclaimed property division of the state. If the bank owner expects a return of funds then they must contact the state for it as the original account in the name of the owner is closed and Bank of America no longer holds the funds.
Along with the checking and savings account, several other types of accounts are subjected to escheatment including, CD and IRA balances, safe deposit box contents, cashier’s checks and other official items that are not negotiated and securities such as stocks, bonds, and mutual funds, as reported by The US Sun.
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Guidelines issued by the bank for account safekeeping
Bank of America recommends several proactive steps to help customers keep their accounts active and avoid classification as abandoned property. One key suggestion is to regularly log in to online accounts and check account balances. The bank also suggests customers make regular transactions via their checking or savings account to keep them active.
Additionally, users also keep their addresses, phone numbers, etc up to date with the bank and cash checks or financial documents before they reach their expiration date. The users of Bank of America can also take advantage of the digital tools to get personalised alerts and monitor the status of their accounts, as reported by The US Sun.
However, people who do receive the letter of inactive account from the institution will have to follow the instructions detailed to contact them and prevent escheatment. Customers whose accounts have been escheated can recover their funds by following the state's unclaimed property process. This typically involves providing proof of identity and ownership, such as ID documents or account statements, to verify the claim and retrieve their assets.
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