Bank of America has addressed concerns about accounts being mistakenly labeled as “abandoned,” explaining why this happens and how customers can prevent it. The bank has also provided guidance on maintaining active status and avoiding potential issues.
Bank of America Explains Account Closures
As the second-largest bank in the U.S., Bank of America serves approximately 69 million consumers and small businesses, offering services such as credit cards, home and auto loans, and checking and savings accounts. According to their official website, accounts that remain inactive for three or more years may be classified as abandoned property.
Bank of America follows specific protocols for handling abandoned accounts. If no action is taken, the bank may send a warning letter, notifying the account holder that the account could be turned over to the state under escheatment laws.
Once an account is transferred, the funds are sent to the state’s unclaimed property division. Customers who want to reclaim their funds must contact the state directly, as Bank of America no longer holds the money.
In addition to checking and savings accounts, other accounts subject to escheatment include CD and IRA balances, safe deposit box contents, cashier’s checks, and uncashed securities like stocks, bonds, and mutual funds, as reported by The U.S. Sun.
Guidelines for Keeping Accounts Active
To prevent accounts from being marked as abandoned, Bank of America recommends regularly logging in to online banking and making occasional transactions. The bank also advises keeping personal information, such as addresses and phone numbers, up to date and ensuring checks or financial documents are cashed before they expire.
Customers can also use digital tools to receive personalized alerts and monitor account activity. If a customer receives a warning letter regarding inactivity, they should follow the instructions to contact the bank and prevent escheatment.
If an account has already been escheated, funds can be recovered by following the state’s unclaimed property process. This typically requires proof of identity and ownership, such as ID documents or account statements.
Bank Notices on Escheatment
Bank of America is sending letters to customers who have not accessed their accounts for several years, warning them of possible deactivation due to escheatment laws.
The bank, which operates 3,700 financial centers nationwide, states on its website: “If you have not accessed your account for an extended period (typically three years or more), you may receive a letter from us informing you that your account is considered abandoned and may be turned over to the state under escheat laws.”
The statement further clarifies: “You will need to follow the instructions on your letter to contact the bank and prevent escheatment.”
Understanding Escheatment Laws
Escheatment refers to the process of transferring abandoned or unclaimed assets, including inactive bank accounts, to the state.
According to Bank of America, “Escheatment is the process of reporting and remitting abandoned/unclaimed property to the appropriate state agency for custodial safekeeping.”
Escheatment laws vary by state, which means the timeframe for declaring an account abandoned can differ.
The bank advises: “We encourage you to log in and check your balances regularly to keep your accounts active.”
Which Accounts Are Affected?
In addition to checking and savings accounts, escheatment laws apply to:
- CD and IRA balances
- Safe deposit boxes
- Cashier’s checks and other unnegotiated official items
- Securities, including stocks, bonds, and mutual funds
Bank of America’s Account Closures
As more customers shift to online banking, Bank of America has been closing physical branches. However, customers should also be aware that accounts left inactive for too long may be closed.
Many people do not realize that if an account remains untouched for around three years, it may be labeled “abandoned.” Once this happens, the bank may restrict access, and funds could be transferred to state custody under escheatment laws. These laws differ by state and are meant to manage unclaimed property, but they often catch people off guard—especially those who have forgotten about an old savings account, IRA, or Certificate of Deposit.
This policy applies not only to traditional checking or savings accounts but also to Individual Retirement Accounts (IRAs), CDs, investment accounts, safe deposit boxes, and even uncashed cashier’s checks. Once deemed inactive, the account holder may receive a warning letter, but if no action is taken, the funds could be transferred to the state.