CANADA - 2025/01/27: In this photo illustration, the Bank of America logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
Bank of America customers and their families are being warned about a policy that could result in account closures. As part of its compliance with state regulations regarding inactive or abandoned accounts, the bank has the authority to close accounts that have not been active for a specific period.
According to the bank’s official website, accounts that remain untouched for an extended period—typically three years or more—may be classified as abandoned. Customers may receive a notice informing them that their account is at risk of being turned over to the state under escheat laws. The notification instructs account holders on how to respond and reclaim their assets before escheatment occurs.
What is Escheatment?
Escheatment is a legal process in which financial institutions must report and transfer unclaimed or abandoned property to the state. Each state has specific regulations dictating when banks must hand over dormant account funds. If an account remains inactive for the legally defined period, the bank is required to escheat the funds to the appropriate state authority.
In Michigan, for instance, property is deemed abandoned if there is no activity for three years or more, or if the financial institution cannot locate the owner.
What Can Be Escheated?
Escheatment laws apply to various financial assets, including:
- Checking and savings account balances
- Certificates of deposit (CDs) and individual retirement accounts (IRAs)
- Contents of safe deposit boxes
- Cashier’s checks and other unnegotiated official instruments
- Securities such as stocks, bonds, and mutual funds
If you fail to respond to an escheatment notice, the bank may surrender your account’s contents to the state. Reclaiming these funds can then require additional steps through state unclaimed property offices.
How to Prevent Your Account from Being Escheated
To avoid the risk of escheatment, Bank of America advises customers to log in to their online accounts regularly and review their balances. Performing simple actions, such as making a deposit or withdrawal, can help keep an account active.
With 69 million customers and 3,700 financial centers across the U.S., Bank of America continues to enforce state-mandated regulations, emphasizing the importance of regular account activity. Customers should stay vigilant and ensure their financial assets remain accessible by maintaining periodic transactions and responding promptly to any notifications from their bank.
