When a Bad Check Leads to a Closed Bank Account: Can You Open an Account at the Merging Bank?
Recently, we've been addressing a common concern: if your bank account was closed due to a bad check from a customer and the bank has merged with a new bank, can you open an account at the new bank?
Talk to the Bank
Most banks will not open a new account if you currently owe them or another bank money from an overdraft, regardless of the reason.
I Don’t Believe You
Banks don’t close an account because a customer deposits a bad check. This situation occurs more frequently than one might think, and when it happens, the bank normally notifies the customer. If you unknowingly tried to spend money that was in an overdrawn account, the bank will simply charge you for an overdraft and demand that you rectify the account balance.
There’s More to the Story Than You’re Telling
Most people have encountered a situation where a check was deposited and then bounced. It happens all the time, and if you didn’t know the check was bad, you did nothing wrong. You acted in good faith, and the person who gave you the bad check was the “bad guy.” It’s very odd that your bank would close your account due to a bad check deposit alone. If that truly happened, talk to the bank manager and explain the situation. Otherwise, provide the entire story.
A Personal Experience
I faced a similar issue with my business account. As a contractor, I typically received a 50% down payment to start a job. Most of my projects took a few days to finish. When one worker's check bounced and I had already finished the job, I managed to cover the materials on my account. However, this caused my business account to have a negative balance of $756.00. The financial institution closed the account and filed a police report against my company.
I had another business account in a different bank. It took me months to collect the money for the job and pay my employees and suppliers. The bank put me on a payment plan, and I couldn’t open new accounts until the outstanding balance was cleared. I also had several loans with the bank, which were rolled into one account, and I was behind on the loan payments. The bank was in the middle of selling the loan, so they were hiding my delinquency. After about three months, I went to court over my negative bank balance. The judge told me to pay the bank and bring the court receipts showing a zero balance. Upon visiting the bank, the manager working on other banks' accounts placed me in an office and locked me inside for about 45 minutes. After the incident, the manager didn't provide any further explanation.
Steps to Take if Facing Similar Situations
1. **Document Everything:** Keep a detailed record of all communications with the bank, including dates, times, and names of individuals you spoke with.
2. **Review Your Statement:** Carefully review your bank statements to ensure that all transactions are accurately reflected. If there are discrepancies, report them immediately.
3. **Seek Legal Advice:** If the situation escalates, consider consulting with a legal professional to discuss your options.
4. **Talk to the Manager:** Present your case to the bank management, ideally at a higher level. Explain the entire situation thoroughly.
5. **Follow Up:** Keep track of any agreements or promises made by the bank. Follow up regularly to ensure they are being honored.
6. **Explore New Options:** If the bank refuses to budge, research other financial institutions that may be more receptive.
Conclusion
While it's common for banks to close accounts due to outstanding balances, there may be other reasons involved. By providing detailed documentation and consulting with management, you may be able to open a new account at a merging bank. If the bank refuses, exploring new financial institutions can often provide a fresh start.