Latest news with #accountclosure
CBS News
2 days ago
- Business
- CBS News
Can a bank close your account without warning? Here's what to do if it happens.
We rely on our bank accounts to pay bills and manage finances, but your bank can close it -- whether it's a checking, savings, or even credit card -- at any moment without warning. It can be a financial headache, but there are steps you can take to try to resolve it or avoid it from happening again. Bankrate's Greg McBride explains that banks have the right to close accounts based on their discretion and policies. There are various reasons it might happen, he said. "It could be long periods of inactivity, having a zero balance in the account, or even a negative balance," McBride said. "If you've had excessive overdrafts, even suspicious or fraudulent activity, that could be cause for sudden account closure." McBride says banks generally consider an account inactive if there has been little to no activity over several years. Negative balances from fees caused by frequent overdrafts can also trigger closure. Additionally if your bank suspects you're either a victim of fraud or engaging in fraud, it can close your account, he said. If the closure is due to suspected fraud or unpaid balances, your bank may report it to something called ChexSystems, McBride said. It's like a credit report, and banks use it in their application process, so it could impact your ability to open an account somewhere else. But also like a credit report, you are entitled to a free copy of your ChexSystems report annually, and you do have the right to dispute it. When a bank closes your account, you will receive any remaining balances, according to Bankrate. You'll want to be sure you know how the bank will get you your funds. It's also important to know that any scheduled transactions or direct deposits will fail, which could result in late fees or missing income. If a bank closes your account it's important to act quickly: If you feel your account was wrongly closed, you can file a complaint with a federal agency like the Consumer Financial Protection Bureau or the Office of the Comptroller's Customers Assistance Group. McBride said you can avoid account closure by being proactive and maintaining account activity, avoiding transactions banks might consider high-risk like online gambling, and staying in communication with your bank about any planned large deposits or other significant financial changes.
The Sun
20-06-2025
- Business
- The Sun
Thousands of of ASOS customers banned and accounts deleted as retailer cracks down on ‘insane' policy
THOUSANDS of ASOS customers have had their accounts banned and deleted as the retailer cracks the whip on its return policy. Shoppers were sent emails detailing how their accounts had been closed with "immediate effect" after the online retailer said they breached the terms of its Fair Use Policy. 1 The move sparked fury among punters, with many describing the move as "unfair" and "insane". Taking to X, formerly Twitter, one shopper said: "Account closed for consistent breaches of their [ASOS] Fair Use policy when I haven't returned anything since October." While another confused user said: " I haven't shopped with ASOS in over a year and I still get an email telling me my account is being closed." Another upset customer said: "ASOS have really hurt me today closing my account what did I do?." And a fourth added: "I've made three orders in the last six months and from those orders sent back only one pair of jeans. "This is a joke, I've been a loyal customer for years and now you close my account . An ASOS spokesperson: "We recently closed the accounts of a small group of customers whose shopping activity has consistently fallen outside our Fair Use policy. "This helps us maintain our commitment to offering free returns to all customers across all core markets." It is understood that even if customers have not used their account in recent months, it could still be closed if they breached policy rules. Last year, the online department store said it would charge customers for returning items unless they spent a certain amount. The new rule means shoppers only get free returns if they keep £40 or more of their order. My Asos dress looks so high end it's giving Balmain on a budget – it's perfect for a birthday, I'm begging you to buy it Otherwise, £3.95 will be deducted from their refund. Premier ASOS customers, who pay £9.95 a year for free delivery, are also not exempt from the change. But they only need to keep £15 of their order to dodge the charge. The digital department store previously said its profits were bruised by customers making large orders and not keeping all of the items. However, the move has been labelled as unfair by many punters, especially as they cannot try before they buy when shopping online. CRACK DOWN ON RETURNS And ASOS is not the only online store to crack down on customers who make frequent returns. H&M, Boohoo, Pretty Little Thing, and Zara are among stores which now charge customers. Next also introduced the change at the start of 2023 and customers now have to fork out £2.50 per item returned. In December 2023, Debenhams left shoppers feeling "cheated" after introducing a charge for returning online goods. Can your account be closed for making too many returns? By Laura McGuire, Consumer Reporter WHEN shopping online it is important to be clued up on what your rights are - especially when it comes to making a return. H&M, Boohoo and Zara are among the countless fashion retailers which make customers pay for sending products back. And brands such as ASOS and Pretty Little Thing now ban customers who return items frequently. Retailers can impose these stricter rules as part of their own returns policies. Some stores may assess shoppers return behaviour on a case-by-case basis, while others may have a strict blanket policy. Amazon customers in the US have claimed the retail giant has closed accounts without warning more making too many returns.
