Account closures can be done without prior intimation to you. They can just close your account at any point in time. And they are not obligated to notify you once it is closed too. If you want to bring your account back, you need to act fast. If you do not contact them in 30 days, your account is gone forever.
Now if you are facing this unfortunate thing and want to know why Barclays closed your account with your money in it do read on.
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Why does Barclays close my account with money in it?
Here are the plausible reasons your account has been closed by Barclays.
Reason 1: Inactive account
Every bank account is kept active by your interaction or usage with it. If you have not used it in a while, the account becomes dormant, in other words inactive.
If it is because of this reason your bank account has been closed, then you would have gotten a heads-up. It would tell you that you have been inactive and that your account will be closed soon.
A simple Google Pay money transfer is also enough to keep your account. So, if you haven’t done any kind of transaction or withdrawal in the past few months, your account will be closed by the bank.
Reason 2: Zero or negative balance
If you have had zero balance for a long time, your account will automatically be closed. This is because the bank will not have profited from your account if you do not have any amount in your account.
Or if you have a lot of overdrafts and your balance is on the negative side for too long, your bank will close the account. And you will be sent the list with the amount you owe them. Just because they closed the account, you have not escaped the debt. Pay it off as soon as you can.
Reason 3: Multiple transactions in a limited time
There are limits on withdrawals, transfers of money, and buying things. The number of transactions and the amount that is involved is a factor that is considered by the bank. If you do a lot of transactions that are in huge amounts, your account might be closed.
Reason 4: Suspicious activity
There are a lot of things that can be flagged ultimately causing the bank to close your bank. For example, let us say someone sent you a considerable amount of money. If they are not from work or not from your immediate family then the transaction is a red flag. The information that they are legal or not will come into question.
They might just be a friend who has lent you money or sent some amount to you as a present. In that case, you need to contact the bank and fill them in on the details.
Irregular transactions such as the ones mentioned in the above example look really suspicious. The bank does not have any other option but to close your account.
Reason 5: Fraudulent activity
Whatever transactions you have done, must be within the confines of the law. If someone you dealt with in the past has been leading an illegal life and you have transactions with said person, your account will be locked or closed.
If you or the person you are making regular transactions with are involved in any of the following illegal proceedings the bank is well within its rights to close your account.
- Drug dealing
- Money laundering
- Identity theft
- Court orders or legal disputes
- And the likes of any kind of criminal activity you can name.
Reason 6: Your branch has been closed
For unforeseen reasons, if the branch you opened your account is closed, your account will also be closed. In some cases, you can still remain a customer of that bank, just from another branch. If the branch has been closed now, you might have gotten an official intimation to shift your account to another branch or take out your money.
In any case, you need to contact customer support and ask them how to proceed further. This is at your discretion, as you can either open a new account in the same bank or go to a new bank in your vicinity.
Reason 7: Your details are incorrect or non-existent
The bank tends to ask you for your address, mail, phone number, and other miscellaneous details. If you have not given the required information to them, they will not be able to contact you. Or if you have given incorrect details, then also they can’t get to you. So, you leave them no option but to close your account.
If you move to a new address or have taken up a new phone number and not updated it with the bank, then you will have issues like this. If you do not update necessary information like this, they cannot contact you and your account will be terminated.
Reason 8: Joint account holder issue
If you are in possession of a joint account, and the other person is in some kind of legal trouble, the account will be closed. And you will not be able to do anything until the problem or the case is resolved. You might be completely unrelated to the case, but the joint account will be closed all the same.
The money and your account will be out of access to you until there is no proof of illegal activity.
A bank closing your account is certainly a piece of disturbing information. But do not lose all hope, you might still have a chance of getting your account back. You can contact your branch and ask them why they have closed your account. And ask them how (if it is possible) you can get it back.
This article provides you with the main reasons why a bank closes your account. I hope you found the answer you were looking for.
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.