Bank of America has a new announcement for all of its users throughout the United States. They have issued a warning that drastic measures will be taken against all accounts classified as inactive or abandoned. The financial institution announced that this new policy is a follow-up on laws in force in each state across the country. They plan on complying with the new regulations on unclaimed assets. If an account is classified as abandoned, it could lead to blocking, or the remaining funds will be transferred to state custody.
In most cases, prolonged inactivity, generally for three years or more, can result in the complete blocking of the account. In that case, the holder will lose access to their funds if measures are not taken at the right time. Bank of America has urged all its users to take proactive actions to keep their accounts running and protect themselves from losing funds. The warning was officially published on the bank’s website, along with the requirements that needed to be met in order to keep an account from being canceled.
On their website, the financial institution explained that if an account has no activity for three or more years, it should be considered abandoned. The bank’s first action would be to contact the holder. However, if there is no response from the customer’s end, BOA will be obliged to transfer the funds to the relevant state agency.
Bank of America noted on its website, “The legislation of each state defines when an account is considered inactive and at what point we must transfer it to the state.”
Notably, this new policy will not only apply to savings and checking accounts across the United States but also to other financial products such as Certificates of Deposit or CDs, securities, stocks, safe deposit boxes, uncashed cashier’s checks, and Individual Retirement Accounts or IRAs.
Alongside the policy, Bank of America also explained the necessary proactive measures that must be taken in order to prevent an account from being classified as abandoned. The requirements are :
- User must make regular transactions in their savings or checking accounts.
- Cash checks and other financial documents before the expiry dates
- Customers should often check activity on their accounts using mobile or online banking system
- Personal information such as phone numbers and residential addresses should be updated.
Bank of America highly recommends that its users utilize digital tools so account holders can stay updated and receive personalized alerts. It would also help them monitor the status of their accounts. These proactive measures should be taken promptly in order to prevent loss of funds or lengthy legal proceedings.
This latest warning also complies with the latest changes implemented by financial institutions in America. Keeping an account up to date is the only way to avoid canceling by Bank of America.
