Bank of America Will No Longer Reopen Zombie Checking Accounts
Ever heard of a “zombie checking account?”
It’s an account closed by the customer that gets revived, if you will, by electronic transactions such as an automatic bill payment.
It was standard policy for many banks to let those accounts automatically reopen–often incurring or other overdraft fees in the process, without the knowledge of their former account holders.
Until now. The Huffington Post reports that Bank of America just announced it will no longer allow closed accounts to become automatically reactivated starting this week, largely due to customer feedback.
Because while checking accounts rising from the dead sounds like the appealing plot of an educational Tim Burton short, it’s actually a pain in the the neck for those checking account owners, as The Huffington Post reported a while back.
With the new change in policy, the bank reminds customers that it will have to inform anyone with the account information that the account is closed, but it will not reanimate any zombies.
It’s not all good news, though: This change in policy doesn’t affect the rising checking account costs across the board (more on that here).
If you’re facing higher fees at your bank or are otherwise unhappy with it, use our step-by-step checklist to make the switch as easily as possible.