Banks closing checking accounts holding seizing funds with no recourse - Bank of America the worst

[CrSter]

Lot of articles about this lately.

https://www.cbsnews.com/losangeles/news/on-your-side-bank-customers-report-unexpected-account-closur...

https://www.nytimes.com/2023/11/05/business/banks-accounts-close-suddenly.html

https://bestlifeonline.com/how-to-protect-your-bank-account-news/

but be aware that Bank of America is one of the worst at this because of their shoot first - ask no questions attitude.  Banks like Wells Fargo will at least allow a thirty day "wind down" period where you'll be allowed to withdraw your funds prior to the final closure date, but Bank of America shutters the checking or savings accounts on a whim, and leaves the funds frozen for weeks even months, until it returns the funds (or seizes them), with no recourse no way to complain, and no contact posssible with the BofA Risk Department that handles the closures.

[Gregory1776]

Bank of america has banks everywhere. id go there and get a check i have food to buy  

[CrSter]

Yes in theory but the point is once Bank of America decides it wants to close your checking account it freezes the funds no money in or out until BofA decides to release the funds.  Accounts could be frozen "pending closure" for weeks or months and going to the branch won't help.

[FicoMike0]

Another thing to worry about! I'm glad I have accounts at several banks. 

[TrapLine]

---

@FicoMike0 wrote:

Another thing to worry about! I'm glad I have accounts at several banks. 

---

Haw ... it is just a little time and we will see a cry from behind the vertical bars ... fund my escape for FicoMike8 

[MarkintheHV]

I am another for for diversify.  I dont have more than one credit card at an institution, three checking accounts (2 active and 1 dormant) and three savings accounts, and none of them are at the big banks.

[FicoMike0]

I moved one of my direct deposits to navy. Now I think I'll move the other to penfed. I don't have boa, but I don't trust wells or usb, who I do have, either.

It sounds like cash transactions may trigger this piracy. I only do cash with one bank, I don't keep a lot of money there anyway.

[CrSter]

Navy FCU sounds good not just because it is a credit union but because it seems to have more branches across more states than any credit union.

AVOID BofA for sure.

[Anonymous]

---

@CrSter wrote:

Lot of articles about this lately.

---

All three of those linked articles are

July 17, 2023
Nov. 5, 2023
Nov 21, 2023

Anything more recent to cite?

[CrSter]

Nothing has gotten better since November.  Still the way it is.  Wells Fargo at least gives a month's notice and allows a wind down period of aboit a month with full access to funds before the closing date,

Bank of America shutters the accounts and freezes funds pending closure and sometimes seizes funds.  There are horror stories about BofA's doing this online.