It’s common for a multinational bank like Wells Fargo to close a checking or savings account. There are several reasons why this prestigious financial institution closes its customers’ accounts without notice. The most common cause for this is a zero balance on your account.
Haven’t deposited money in your Wells Fargo account in the past few months? It can be another reason for the account closure. Bounced checks and excessive fund transfers are other causes why Wells Fargo closes a customer’s account.
Wells Fargo can also close your bank account if you have submitted incorrect tax information. So, what should you do if they close your savings or checking account? Don’t worry; contact the bank authorities to know the reason for the account closure.
Here are the reasons why Wells Fargo closes an account and what you can do after that:
Why Do Wells Fargo Close a Bank Account Without Any Prior Notice?
Wells Fargo doesn’t close any of their customer’s accounts without any valid reason. This American multinational bank reviews your past activities on your account before closing it. Did you recently open an account on Wells Fargo? Check the following causes to avoid a sudden account closure:
1. Zero Account Balance
Wells Fargo closes the customer’s account if it has no funds. You can open an account on this bank with zero balance, but it doesn’t mean the balance will remain the same for months or years.
Even if you have some money in your account, the possibility is high that the monthly fees have been reduced to zero. Thus, check your bank balance every month to avoid unwanted account closure.
Do you have a Wells Fargo account with zero balance? You must add some cash to the account. Wells Fargo closes most accounts with zero balance within a day. However, the time limit for the account closure might vary depending on the account type and from one state to another.
2. Too Many Overdrafts or Unpaid Overdrafts
Unpaid and too many overdrafts can be a reason why Wells Fargo decided to close your account. The inability to repay the money that you have been drafting from your bank account can result in closure. Wells Fargo authorities check the bank balance before closing the savings or checking account.
3. Inactive Account
This is the prime reason why Wells Fargo closes an account. No activities with your savings or checking account result in account closure. So, when this multinational bank closes your account? Let’s say you have a debit card and haven’t used it for 2-3 years, and the bank will close the account due to lack of activity.
Banks like Wells Fargo consider a customer’s account as “abandoned” if you haven’t used it for more than 3 years. However, they don’t immediately close the account.
The bank authorities contact the account holder, and if they don’t respond to the call or mail, they opt to close the account. The money your account holds will turn over to the state’s unclaimed property if the account holder doesn’t respond.
Did you miss Wells Fargo’s call? Consider calling them back as soon as possible. Moreover, you can visit the nearest bank branch and talk with the bank’s authorised people.
4. Bounced Checks
Too many bounced checks are another reason why Wells Fargo closes an account. You might need to find out the reasons for bounced checks if you have recently opened an account. A bounced check occurs when you need more funds in your account.
When a check bounces, the bank charges a penalty fee. Wells Fargo doesn’t close the customer’s account if only one check bounces. The bank closes the account if too many checks bounce and doesn’t pay the penalty fee on time.
5. Excessive Fund Transfers
You must know the bank’s transfer limit before opening an account. Wells Fargo allows their customers to transact a minimum of $25 and a maximum of $5,000 daily. The bank will close your account if you exceed their fund transfer limit.
However, not all Wells Fargo accounts have the same transfer limit. The transfer limit of a checking account is different from a savings account. What happens if you exceed your savings account’s Regulation D transfer limit? Wells Fargo will close the savings account immediately and convert it into a checking account.
6. Identity Theft
Wells Fargo might close your savings and checking account if it identifies suspicious activities. The bank does this to prevent unwanted fraudulent activities, securing your account. You will be notified in such instances that they are closing your account to protect your privacy.
7. Engaged in Criminal Activities
If you have been engaged in criminal activity and haven’t reported it to Wells Fargo, it will cease your account. Moreover, the bank closes the account if anyone has been convicted of a crime after opening a savings account.
Other Reasons Why Wells Fargo Closes an Account:
Wells Fargo will close your account if you don’t provide the tax information to the bank authorities. Moreover, after the verification, your account will be frozen if they find out you have provided incorrect tax information.
The bank also closes the account if you engage in illegal activities like money laundering. Depositing or withdrawing a lump sum of cash can also result in account closure. They might also close your account if the bank decides to close its branch.
What Should You Do if Wells Fargo Closes Your Account?
Contacting the bank executives is the first thing you must do when you get a message about the account closure. Ensure to record the phone calls or keep the written notices you received from the bank.
Here are the other things you must do if Wells Fargo closes your account:
1. Cancel the Direct Deposit and Automatic Withdrawals
Stop the direct deposits if Wells Fargo decides to close your account. Move the fund to another bank’s account or try to transfer the money in other ways. Cancel the automatic bill payments and monthly subscriptions enabled in your Wells Fargo mobile app. It will help you to avoid additional charges and penalty fees.
2. Contact the Recipient
Contact the recipient if your check still needs to be cashed. Request the payee to set up another payment method to prevent the check from bouncing. The bank might charge a hefty penalty if the check bounces after the account closure.
3. File a Complaint Against the Bank
Complain to the bank if Wells Fargo has closed your account without any valid reason. Where should you file the complaints? Write a letter to the Customer Assistance Group’s federal group stating when the bank has closed an account.
4. Open a New Savings or Checking Account
Don’t open an account with another bank. Instead, consider opening a new savings or checking account in the same bank. You can apply for a new account through Wells Fargo Online or visit the nearest bank branch. However, Wells Fargo won’t reopen the account that it has previously closed.
How to Stop Wells Fargo from Closing Your Account?
There are several ways to prevent your bank from closing the account. Check your account balance regularly, especially before making a transaction with a merchant or writing a check. You can do this easily from Wells Fargo’s mobile app or website.
Use your bank account for fund transfers frequently to keep it active. Enable Wells Fargo’s text or email alerts to see the low balance warnings. Additionally, you must check whether your deposited money is added to your account.
Don’t make any transitions if there is insufficient balance in your Wells Fargo account. Keep track of automatic cash withdrawals like monthly utility bill payments.
Most banks recommend linking your bank accounts. You can transfer the money quickly from another account if you need more funds in another account. Review your monthly bank statements, check for errors and try to rectify them as soon as possible.