Warren, AR asked in Banking for Arkansas

Q: What are my Rights to funds in a closed bank account

My account was frozen then closed 9 months ago before my account was closed i uploaded all the information they requested now they are refusing to send my remaining balance until I reupload documents

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1 Lawyer Answer
James L. Arrasmith
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  • Business Law Lawyer
  • Sacramento, CA

A: When a bank freezes and then closes your account, it can be a stressful experience, especially when there are remaining funds that you cannot access. Typically, banks have the right to freeze or close accounts due to a variety of reasons, such as suspected fraudulent activity, non-compliance with bank policies, or failure to maintain minimum balances. However, even if an account is closed, you still have rights to any funds that were in the account.

If your bank is requesting additional documentation before releasing your funds, this is likely due to regulatory requirements aimed at preventing fraud and money laundering. Banks are required to follow strict guidelines when it comes to verifying the identity of their customers and the legality of their funds. It's important to comply with these requests, even if it means resubmitting documents you believe you have already provided.

If you have already complied with their requests and are still facing difficulties, it might be helpful to escalate the issue within the bank, reaching out to a higher authority like a manager or the customer complaint department. If the issue remains unresolved, you may consider seeking advice from a consumer protection agency or legal counsel to explore further options to recover your funds. Remember, persistence and clear communication are key when dealing with such situations.

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