Is It Illegal for a Bank To Close Your Account Without Notice?

Today I found out I had a bank account since four months after I was born on 3/21/98. Both of my parents completely forgot about the account. The account had 100$ on it and I was planning to spend that on some new clothes after the withdrawal. We went to the bank and my Mom had to fill out a withdrawal slip, and after she finished the accountant told us she couldn't find my account. She said it may have been "terminated" over time since no one had used it. She asked if my Mom had gotten any mail from the Government concerning my bank account and she didn't(She didn't even know about the account!). All I'm asking is if its legal to close my account and keep my money with out me even knowing? Either way its ridiculous.

6 Answers

  • 8 years ago
    Favourite answer

    Actually, it the account has no activity for 7 years, the bank is REQUIRED to turn the 'unclaimed funds' over to the state. You can still claim the funds by providing proof of ownership to the state. Do an internet search for the name of the state and 'unclaimed funds'.

  • 8 years ago

    Many savings accounts started changing.

    Notifications were ALWAYS sent out in the mail.

    What may have happened.

    Your savings may have changed from free to a fee.

    Ex: Unless you keep $300 minimum balance, you get charged $5 a month.

    This could have quickly dwindled that $100.

    Don't blame the bank. Blame your mom.

    She was also on the account and was responsible for paying any taxes on interest.

    By law, they have to send this form so you can do your taxes.

    Something strongly tells me that your mom closed this account years ago, and just forgot that she did this.

    Also there are fees on some accounts (allowed in some states).

    Called Inactivity Fees.

    No mail for all those years? Again, don't blame the banks.

    Parents closed the account and forgot, or your parents are bad at opening mail.

  • M W
    Lv 7
    8 years ago

    When an account is inactive for a certain number of years, banks will close them and transfer the money to the State Treasurer's office. The hold unclaimed funds for a long, long time. Go online to your state's treasurer website, find a link for "unclaimed cash" or something similar.

  • 8 years ago

    Yes, it is legal... in fact it is FEDERAL LAW. When an account is dormant for 3 years (not used), the money is escrewed to the unclaimed property office of your state. This is actually for your benefit so you don't "lose" the money, which is exactly what happened to you.

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  • Anonymous
    4 years ago

    was this a credit card or a checking/savings? we have made people close their accounts because they couldn't keep up with them. maybe that is the reason why... but you have a right to know. you need to contact chase/wamu and ask to speak to a supervisor until you get an answer. good luck to you.

  • 8 years ago

    a bank can close any account anytime

    the money is held intrust for a number of years and then forward to the government (mafia)

    anything over ten years is lost

    tell your mom to take care of business better

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