Are you not able to access your Wells Fargo account? Is it closed?
Is your Wells Fargo account closed without any notice?
If your Wells Fargo account is closed, and you aren’t aware why then you have landed on the right place.
Here, we have explained why Wells Fargo might have frozen or closed your account and what you have to after it and how to avoid it in the future.
So, let’s get started.
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Why did Wells Fargo close my account without notice
There can be several reasons why Wells Fargo can close your account such as have zero balance, have been inactive for a long period of time, too many bounced checks, too many overdrafts, Suspected Identity Theft, high risk occupation, etc.
Below, we have explained all the reasons in detail why Wells Fargo may close your account and what you can do after that and who to avoid it.
1. Inactive account
The first reason Wells Fargo may close your account could be due to, little to no activity by you with your bank account.
Let’s say you have only submitted a check in the last two years and have only two-three debit card transactions in last 2-3 years. So, in this case the bank may decide to close your account due to lack of activity.
Typically, a bank considers an account as “abandoned” if the account holder haven’t had any activity with the bank in the last three to five years.
In this case, Wells Fargo will try to contact the account holder. If the account holders did not responds back, the Wells Fargo will close the account.
Moreover, if the account holder do not contact the bank to claim the money in the bank account, the money may be turned over to a state’s unclaimed property program.
2. Zero balance
Another reasons Wells Fargo might have closed your account could be that your account contains no money.
Simply because the account says there is no minimum balance required, it doesn’t means the account have zero balance for several days or months.
Even if you have some cash in your account, it might be that several monthly fees have reduced that balance to zero, and you aren’t aware of that.
So, make sure your bank balance never goes to zero.
Now, if your account have zero balance, the time limit to close your account by Wells Fargo may vary for different types of account such as it may be different for checking and savings account. Also, it may vary from state to state.
3. Bounced checks
Another reason, Wells Fargo might have closed your account could be that you have racked up so many bounced checks.
If your checks are repeatedly bounced, Wells Fargo might decide to close your account with any notice.
4. Too many overdrafts
Next, too many overdraft or unpaid overdrafts can also result in the bank account closure.
If you have been over drafting your account for a long period of time or not repaying it on time – the bank might close the account when there’s enough money in it to at least pay for the overdrafts and any overdraft fees.
Overdraft can occur when you carry out a debit card transaction, write a check, withdraw cash from an ATM.
5. Too many transfers
If you repeatedly exceed the transfer limits imposed by the Wells Fargo, it might be the reason Wells Fargo may have closed your account.
Now, there are different limits associated with different types of account. Such as transfer limits of checking account and saving accounts are different.
In case you exceed the Regulation D transfer limits of your savings accounts, Wells Fargo might close it and convert it into the checking accounts.
6. Missing Tax information
If you have not submitted your tax information to the bank or the bank couldn’t verify your tax information, it could be another reason why have frozen or closed your account.
7. Suspected Identity Theft
Wells Fargo might also close your account if it thinks you have been a victim of identity theft to prevent further fraudulent activities.
8. Suspicious fraud
Another reason why Wells Fargo may close your bank account could be that if you are using the bank account for some fraud or doing some illegal activities such as money laundering, etc.
Depositing, transferring and withdrawing large sum of money may also raise the red flag.
9. Criminal Conviction
In case you have been guilty of a criminal case, and you haven’t reported it to the bank, but Wells Fargo finds it later, it might close your account.
Moreover, if you have convicted a crime after opening the Wells Fargo bank account, then also your account may get closed.
10. High-risk Occupation
Wells Fargo might close your account if you get into a business that’s deemed high risk.
It may include gun sales, marijuana sales, online gambling or escort services.
11. Changes at the Bank
If Wells Fargo have decided to close its branch in your state, it might close your account in that case.
What to do when Wells Fargo has closed your account
Step 1 : Contact the bank and find out reasons for account closure
If your account has been closed without any notice, and you aren’t it has happened, the first step you need to take is to contact the bank.
You can contact the Wells Fargo over the phone or simply visit a branch.
After contacting an executive at the bank, ask the reasons for the account closure.
Note: Make sure to keep record of phone calls or written notices from the bank and the name of bank person, you have been talking with.
Step 2 : Pause direct deposits and automatic withdrawals
The second thing you need to do is to stop the direct deposits to your account.
From where ever you receive the direct deposits, move them to another account or receive those funds via another methods.
Also, pause or stop any automatic bill payments and subscriptions enabled on your account to avoid additional fees and charges.
Step 3 : Check For Outstanding Overdrafts
Next, If any of your checks remains uncashed, contact the payee to set up another payment method to prevent the check from bouncing.
Step 4 : Get a copy Of The ChexSystems Report
ChexSystems is a company that maintains a database of negative information for checking accounts for millions of users.
So, if your account has been closed, it is likely that your data will be present on the website, gaining access to which you can know the reason for your closed bank account by Wells Fargo.
Step 5 : If necessary, file a complaint
In case you feel Wells Fargo closed your account wrongly, submit a complaint to the federal Office of the Comptroller’s Customer Assistance Group.
Step 6 : Look for options to open new bank account
Now, if your account has been closed permanently, you may ask the same bank if you can open another type of account or not.
You can also look for alternative banks to open a checking or savings account.
So, that’s all for now folks. I hope, you were able to figure out why your bank account was closed after reading this post.
For more posts, have a glimpse at our Wells Fargo section or follow a few related posts below.
Ankit Kumar is an Engineer by profession and a blogger by passion. Over the last several years, he has written tons of articles, solving queries on Quora. He also has years of experience in investing in Cryptocurrencies, Funds, and Stocks.