Abandoned bank accounts?

Question

I heard something recently, and I wasn't sure if it was true or not. Is it true that when you don't use a bank account for three years, the bank closes your account and the government takes your money? And if it is, what happens if the opposite is true, you owe the bank money and you haven't used the account for three years?

Answer 1

The bank is required to make an effort to locate you if the account has been idle. If they are not successful, the money is forwarded to the government.

However, if you owe the money to the bank, they'll make an effort to collect from you. How long depends on how much is owed, but generally if the amount is unsecured and they're not successful then they write it off as a loss and you get reported to ChexSystems, which prevents you from opening another bank account with most institutions.

Of course, if the amount is secured then they'll take back the collateral (like a car, house, etc.).

Answer 2

I cannot imagine that the bank would close an account that had money in it, without at least trying to contact you first. I am sure that there are many people who have accounts that they do not touch because it is like having a safety net.

That is a puzzler!

Answer 3

Eventually it goes on your credit report and whenever you try to open a new account you will be unable to. You can always pay the bank back.