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Can/Should I take legal action on a bank for wrongfully closing my bank account?

#1
Hello, I had my bank account abruptly close without notice and am wondering if this is a case I should/could take legal action on. I called their customer service and visited a branch with got back very little info as to why they closed it. They have accused me of doing suspicious fraudulent activity and had flags on my account, but all I did was do a mobile deposit of my paycheck from my new employer who is a Fortune 500 company (adding that to note that employer is a well known company). After placing my check on hold, they eventually processed it, took my funds and now I have to wait 8-10 days to be refunded all the money that was in my account. I now am behind on bills and other living expenses I need to make and will have a negative report that I have to take time to dispute. Can I do anything about this? Thank you for your time.
 


Shadowbunny

Queen of the Not-Rights
#2
Hello, I had my bank account abruptly close without notice and am wondering if this is a case I should/could take legal action on. I called their customer service and visited a branch with got back very little info as to why they closed it. They have accused me of doing suspicious fraudulent activity and had flags on my account, but all I did was do a mobile deposit of my paycheck from my new employer who is a Fortune 500 company (adding that to note that employer is a well known company). After placing my check on hold, they eventually processed it, took my funds and now I have to wait 8-10 days to be refunded all the money that was in my account. I now am behind on bills and other living expenses I need to make and will have a negative report that I have to take time to dispute. Can I do anything about this? Thank you for your time.
What US State are you in, vthokie, or if not the US, what country?
 

FlyingRon

Senior Member
#3
Presuming you are in the US, the funds availability laws do indeed allow them to withhold availability of deposited checks for 9 business days on new accounts. New account holders are always highly suspect.
 
#4
I am in Virginia and had the account with the bank for a little over a year. I just graduated from college so my income was low, but I just don’t understand why doing a mobile deposit of a paycheck from my employer would warrant immediate closing of my account without notice. Just really frustrating, but thanks for your response FlyingRon.
 

LdiJ

Senior Member
#5
I am in Virginia and had the account with the bank for a little over a year. I just graduated from college so my income was low, but I just don’t understand why doing a mobile deposit of a paycheck from my employer would warrant immediate closing of my account without notice. Just really frustrating, but thanks for your response FlyingRon.
Why did you need to do a mobile deposit? Why didn't you just have direct deposit?
 

Shadowbunny

Queen of the Not-Rights
#6
They have accused me of doing suspicious fraudulent activity and had flags on my account, but all I did was do a mobile deposit of my paycheck from my new employer ......
.... I just don’t understand why doing a mobile deposit of a paycheck from my employer would warrant immediate closing of my account without notice......
Have you asked them WHY you had flags on your account? Because I doubt that the mobile deposit was what triggered the flags. Unless, of course, there was something wrong with the check.
 
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#7
Can I do anything about this?
The short answer is nothing that will make you feel any better or put money in your pocket. I can pretty much bet that in your account agreement with the bank, it has the right to close your account at anytime for any reason with no advance notice.

I suggest that in the future you have no less than TWO checking accounts at two different banks so that if this ever happens to you again you have a back up bank because being unbanked is inconvenient to say the least. You should also immediately go open those two new checking accounts because that "flag" thing makes me think you're on the verge of being reported to Chexsystems or the like, and when that happens, your choice of banks will be much smaller.
 

adjusterjack

It's a Dry Heat
#8
It also helps to have a cushion in the account of a thousand or two above and beyond the amount of any paycheck plus living expenses along with a stash of cash at home so your bills can still be paid if something like this happens.