Recent reports have sparked concerns about Bank of America canceling accounts, especially among customers who claim to have lost access to their funds without prior notice. While the bank has not released an official statement confirming widespread account closures, its policies, as outlined on its website, do authorize it to restrict or terminate accounts under specific circumstances.
One of the main reasons for account cancellation is inactivity. According to Bank of America’s website, an account may be considered “abandoned” after a long period without use — typically three years or more. Once this threshold is met, the bank may restrict access, send a notification to the customer, and eventually transfer the funds to the state under escheatment laws.
“If you have not accessed your account for an extended period (typically 3 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,” the bank explains.
What is escheatment and how does it affect your account?
Escheatment is a legal process through which financial institutions must transfer unclaimed or abandoned property to the appropriate state agency for safekeeping. This includes funds from checking and savings accounts, Individual Retirement Accounts (IRAs), Certificates of Deposit (CDs), uncashed checks, securities, stocks, and safe deposit box contents.
Bank of America notes that it is obligated to comply with the escheatment laws of each U.S. state. Once an account is flagged as abandoned, the institution is required to notify the account holder. If the customer fails to respond, the assets are turned over to the state.
To avoid this, the bank encourages regular account activity, such as logging in frequently, performing transactions, or updating contact information. The use of digital tools and account alerts is also recommended to prevent accounts from being mistakenly flagged as inactive.
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Are immigrant accounts being targeted?
In recent months, some media outlets have reported that Bank of America is closing or freezing accounts held by immigrants, citing issues with documentation. Publications like The Sacramento Bee and Miami Herald have covered cases in which U.S. residents — including naturalized citizens — were asked to provide documents allegedly not required to maintain their accounts.
Organizations such as the California Reinvestment Coalition claim that these actions have affected numerous immigrants across the country. In some instances, individuals were left without access to their money for days. Several customers took to social media to share their stories, calling for accountability and transparency. Some even launched petitions urging the bank to revise its treatment of immigrant clients.
Despite the allegations, Bank of America told Miami Herald that no changes have been made to their policy regarding customer information collection and account verification. However, the bank did not directly address the individual complaints, leaving lingering concerns among advocacy groups and the public.
Is there an official Bank of America policy on canceling accounts?
Yes, Bank of America clearly outlines its right to cancel accounts that fail to meet certain criteria. This includes, but is not limited to:
- Prolonged inactivity (typically 3 years or more)
- Incomplete or outdated personal information
- Failure to respond to account verification requests
While the policy is not new, recent technical issues at the bank — including a major glitch that affected account balances — have only heightened fears among consumers. In addition, political commentary, such as former President Donald Trump’s criticism of the bank’s CEO, has added to the scrutiny Bank of America faces.
How can customers prevent their Bank of America accounts from being closed?
To avoid having your account flagged as inactive or abandoned, Bank of America offers several recommendations:
- Log in regularly to check your balance or recent activity
- Make occasional transactions, such as deposits, transfers, or payments
- Update your contact information, including phone number and mailing address
- Cash checks or redeem CDs before their expiration
- Use mobile banking alerts to stay informed about account changes
By maintaining consistent activity and staying in touch with the bank, customers can prevent unexpected restrictions or the transfer of funds to the state.
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