If you will like to know how to close a bank account without visiting the bank, you have to go through this article to understand if it’s possible or not. First, it’s important to point out that banks take the issue of closing accounts as seriously as opening accounts. Closing of an account by the bank is one obligation that is handled with caution, there may be a case of legal action if the bank closes an account without the knowledge of the customer.
Also, closing up an account has some laid down procedures, the owner of the account will determine how long it will take to close the bank account, these steps can only be applied depending on the type of the account the customer is operating. The fact about closing of account is that law requires that the customer be notified and be given a reasonable amount to time to make adjustments as need be. This is so because the customer may have written some un-cleared cheques and has not been presented before the bank.
How To Close A Bank Account Without Going To The Bank
It is important to know as an account holder the things you can do on your account, so it is preferable you first of all confirm if your account is enabled to transfer funds into other accounts. Haven confirmed this, it is important to understand that an account cannot be closed online.
This simply means the account holder need to physically visit the bank,
- You will be required to provide an application to close your bank account
- And then you will be asked to deposit or return your unused cheques still in your possession
- Other item that will be required includes ATM card, passbook etc
How To Treat A Dishonoured Cheque When Closing Bank Account
In an event where a cheque was dishonoured while there is still money inside the account, the customer can actually sue the financial institution for a possible defamation. A customer must be given some period of time to sort out for another bank he would prefer to bank with.
It is also important to note that the above is necessary where the customer still has a loan to pay. He will have to be afforded enough time to pay up and source for an alternative arrangement, if not, the customer may decide to sue the bank for damages.
Period of Notice By A Bank
In the period of notice, what can really quantify as a reasonable notice depends on the fact on every case. While some notice may last for days, others can be weeks or even months as the case may be. Meanwhile, if a notice is given to a customer, customer may still be transacting business up until the expiration of the notice.
At the expiration of a notice, the customer will then be invited and urged to pay up any outstanding debt as well as other commission, then proceed to returning all the unused cheques in his possession to the bank. When all the needful has been done with all the outstanding paid as well as all the charges that will have been deducted, the customer’s ledger account will then be marked CLOSED, it will then be recorded into the banks “Open And Close” register, this simply means that the account holder will have to be at the bank to properly close the account, this here settles the question of how to close a bank account without going to the bank.
How To Close A Bank Account Without Going To The Bank – The Open And Close Register
The Open And Close register is a bank register used by financial institution to maintain the record of both old and new accounts in a bank as well as those one that has been closed. Information in it includes the date each of the account was opened and also the date the account was closed.
In closing of an account, the bank or the customer may begin the process, in a situation where the customer is the one who wants to close an account with the bank, he will not be obliged to inform the bank by giving a notice, in essence, giving the bank any prior notice, but on his part, he must ensure that he clears of any kind of loan, outstanding debts or commission to the bank.
A customer may ask how to close a bank account without going to the bank, but the wish to close his/her account is required to present it in a written form to the institution. A customer withdrawing all his money from a bank does not necessarily connote that the customer wants to close his account, a bank should not even assume such.
Reasons Why A Bank Will Close An Account
A financial institution may initiate the closing of an account in the event of the following;
- When a customer decides to be unreasonable with his dealings with bank.
- When the customer’s account is used for fraudulent practices
- When the customer is out to damage the image of the bank
- Negligence on the operation of an account.
- Loss of withdrawal slip or cheque book, etc
Stopping An Account
Stopping an account is a process where a bank stops all the activities in a particular account, these activities includes receiving or paying out money, these will be stopped by the bank till further notice. It is also important to note that when an account is stopped, it does not necessarily mean it has been closed by the bank, it only means that the account is inactive.
Meanwhile, a bank will revoke a customer’s mandate either by expressly or impliedly.
Below are situations where a bank is required to treat a customer’s mandate as revoke;
- Death or mental instability of the customer
- When a customer is bankrupt, that is in a situation where the customer is an individual.
- When there is a resolution for voluntary liquidation.
- When there is a garnishee order or when there is a court order against the customer’s account.
These are reasons why an account may be closed by the bank. Now, when any of the above happens to a customer, the third party automatically becomes the beneficiary or the sole operator of the account. This is no longer a situation where the customer wants to know how to close a bank account without going to the bank. It is also advisable to stop an account when the owner is not stable mentally, where he may sign off huge amount to a wrong person. An account that is stopped can also be said to have been suspended or frozen.
Note – when an account is closed, it does not mean that the cheque has also been stopped, where a cheque is stopped , it only means that the cheque will not be honoured by the bank, it does not even prevent the bank from receiving fund into the account or even honoring cheques drawn on the account.
Therefore, opening of an account, closing of account, stopping of account, freezing and suspending of an account, are some services that a bank must tactfully render to its customers. By tactful, it means the bank has to employ every form of legal advice in order to fully deliver on this service.