The main reason your account gets closed due to overdraft is because you still use that account for transactions without paying for the previous dues and debts made.
Wells Fargo is a multinational company which is declared a systemically important financial institution (SIFI). Which means that if there is any failure of the company, the financial crisis will kick in. Founded over 93 years ago, it is an institution that withstood the test of time and grew bigger.
Wells Fargo has subsidiaries like Wells Fargo Advisors, Wells Fargo Rail and Wells Fargo Securities among others. By 2021, it claims to have a revenue of 78 billion dollars (US).
(Reasons) Wells Fargo account closed due to overdraft
Firstly, what is an overdraft? An Overdraft happens when a person tries to complete a transaction beyond their balance. The bank will let the money be paid at that moment. This causes a negative balance and will count as a debt on the person’s bank account. And they will have to pay it later with some fees.
The over drafted accounts will be closed and the reasons could be many. The main reason is that you have frequently made overdrafts. A single overdraft will be covered by the bank as a courtesy. But beyond that, the bank will most definitely close your account. It is wise to clear your debt rather than piling it up. So, make sure that you do not have negative balance for a long time.
As you know, you cannot withdraw money if you have an overdraft. But, transactions will be carried out without a problem. Also, you will definitely incur debts.
What happens if my bank account is closed for overdraft?
If your bank account is closed, then obviously you will no longer be able to make any transactions. Contact your bank support for advice on how to move forward with your account.
The first thing you need to do is check with your bank if you can still pay your fees for overdraft and get your account back. There is usually a time limit for you to pay your dues. If you have crossed that date, you might not be able to get your account back. But, you can still ask your bank for details about that.
If your dues are too high you will need to pay it back with the fees that have been accumulated. Generally, the banks give you a certain amount of time before the fees pop up in your account as debt with the amount paid. And once the dues are paid contact the bank representative to know about the status of your account. Redeeming might be possible if you
Wells Fargo closed my account. Can I reopen?
It depends on the reasons your account has been closed in the first place. If you have a serious negative balance and have too many overdrafts, you will definitely not be able to get back your account anyway.
If you have had overdrafts in the past and have cleared your debts in time but you have not used the account in a long time, you can reopen it. Still you need to contact your bank whether you have exceeded the time limit for getting the account back.
Also, it is important to maintain a clean slate. Be a good customer, clear your dues and debts, do not carry out any fraudulent activities with your account.
Once you get the account back, opt out of Overdraft. There are options to opt out of overdraft in bank accounts. If you do this, your bank will not pay for the transaction with money that is not there in your account.
Banks like Wells Fargo have millions of customers and your problem will be resolved in due time. So, you might have to wait for a while till the bank gets back to you with a solution to your issue. Stay in contact and try to remind them.
Q1. How to prevent account from being overdrawn?
Next time you clear your dues and get back your closed account, ensure that you opt out of Overdraft. Also, try to know get to know the fees for Overdraft dues, if you are willing to keep overdraft running.
Once the account is overdrawn, don’t try to use it until you clear all your dues. Make sure that the balance is not negative.
Q2. Will the bank charge me fees if it’s overdrawn even if my account is dormant?
Wells Fargo doesn’t charge you extension fees for your overdrawn amount. It used to be followed before, but it is no longer a part of the system. Dormant accounts are the accounts which are no longer being accessed by the customer. The fees will be calculated till the last usage of the account by the user.
Q3. Can I sign up for low balance alerts before my Wells Fargo account gets overdrawn?
Most banks have this feature where the customers get alerts that their accounts are running on a low balance. Contact Wells Fargo or your bank to know if this is the default setting or if you have to sign up to get the alerts. Turn those on and you will be aware if the you are on the verge of making your account overdrawn.
That is all the information you need to know about the Wells Fargo accounts closed because they are overdrawn. The main thing you need to note here that you need to stay in touch with the bank. Also, ask for the status of the account and the process to get it back.
Follow the bank’s instructions and you will have your account back in no time. Clear your overdraft dues plus fees and you will have a higher chance of getting your account back. Don’t let your balance go down to the negative side.
Thank you! Don’t have a good day, have a great day!
Sri Sahith is passionate and writes his articles by ensuring attention to detail. During his graduation study, he has taken elective subjects like Business Economics and Financial Analysis. These gave him the interest, knowledge and passion to write articles related to Finance-Tech. Also, he loves to read books and talk about them as long as possible.