Wells Fargo is a very renowned American multinational financial services company and it was established on March 18, 1852. The headquarter of this multinational financial service is in San Francisco, California. In July 2015, Wells Fargo became the world’s largest bank by market capitalization. There are many reasons Wells Fargo can close your account. So what you should do if that happened to you.
If Wells Fargo closes your account then you should get all the official documents/reports of your account as well as a written reason why your account was closed. Moreover, you must stop your direct deposit to your bank from the employers. If there are any automatic transfers from your account then you should also stop them. Contact the bank officials and try to find out why they have closed your account. Finally, open a new account at another bank.
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- 1 5 Things To Do If Wells Fargo Close An Account
- 2 How To Close A Deposit Account In Wells Fargo Bank
- 3 Important Reminders For Closing A Bank Account In Wells Fargo
5 Things To Do If Wells Fargo Close An Account
Unexpected closing of a bank account means late payments for bills. Moreover, you have to take a few extra steps to make things right. Sometimes, closing an account by a bank might impact your ability to get a new account with a different bank. So there are a few things that you can do to restore everything. Let’s check them out.
Identify The Reason Your Account Was Closed
If Wells Fargo closes your bank account then try out the reason why your account was closed. Usually, the bank sends out a written notice that your account is going to be closed but most of the time the reason is not included in the notice. So if the bank didn’t include the reason then you need to follow up to get a clear answer on why they’ve decided to close your account. Try to find out if there is any way you can prevent it from happening. For example, if your account was closed because the bank couldn’t verify your tax information then updating the tax information might resolve the problem.
Stop The Direct Deposits Or Automatic Bill Payments
If you have any direct deposit like your paycheck is automatically deposited into your bank account then you should let your employer know as soon as possible about the closed bank account. If you don’t inform your employer and they send the money to your account then there might be a delay to get paid since the bank will have to send the money back. Usually, it takes five to ten business days to send the money back. If there are any automatic bill payments from your close account then you have to make other arrangements to pay the bills. If you don’t do that then you can get late fees or returned payment fees which will add more financial problems.
Check For Outstanding Overdrafts
If your account is closed because of a negative balance then you have to pay the due balance to avoid being shut out by other banks later on. If there are any outstanding overdrafts for a long period of time then the bank can eventually hand your account over to a collection agency. So in this type of situation, the negative account will show up on your credit report which can create a serious problem to your financial score. If you continuously avoid the overdraft then the collection agency will continue piling interest, fees, and penalties along with the main balance. So, in no time a 100 dollar bill can turn into a few thousand. On top of that, you might get sued by the debt collector.
Collect A Copy Of The ChexSystems Report
ChexSystems is a banking reporting agency that collects information about the bank account and the problems related to the accounts. It collects information for deposit accounts including checking and savings accounts. So having a red mark on your ChexSystems Report can seriously hurt your chances of opening a new account. If there is any problem in your report then it will stay on your file for five years unless the bank updates it or requests to have it removed. So getting a copy of the ChexSystems report lets you see what your bank and previous financial institutions you’ve done business with are saying about you. If there is any incorrect information on the report then you can correct them.
Evaluate The Options For A New Account
If there are no major problems in your ChexSystems report then you won’t face any major problem opening a new account at a different bank. But if there are problems with your report then your options are limited for opening a bank account. You can consider Credit unions or online banks as they are member-owned and tend to be more flexible when it comes to past banking mistakes. Moreover, these banks generally charge fewer fees and pay higher rates on interest-bearing accounts. You can also consider the option of Second chance accounts. Many banks offer second chance accounts for people who have made mistakes in the past and need a fresh start.
How To Close A Deposit Account In Wells Fargo Bank
If you want to close a deposit account in Wells Fargo bank then check the below steps:
Step 1: Prepare Your Account For Closure
1. You have to make sure your account has a positive or zero balance
2. All deposits, outstanding and pending items must be posted
Step 2: Contact The Bank To Close The Account
1. Call Wells Fargo at 1-800-869-3557
2. Or visit a Wells Fargo branch near you
Important Reminders For Closing A Bank Account In Wells Fargo
1. Accounts with a zero balance will continue to be charged applicable fees (like the monthly service fee) until you request to close your account.
2. Any recurring payments or withdrawals from your account need to be canceled before your request to close (examples include bill payments and debit card payments) otherwise, they may be returned unpaid.
3. Certain conditions on your account may prevent closure:
a) Inactive accounts need to be reactivated before they can be closed. Ask your banker to reactivate your account. Or you can sign on to Online Banking to see if you have the option to reactivate your account online.
b) Portfolio by Wells Fargo® Checking accounts need to process a statement at month-end, the statement will be finalized no later than the third business day of the month.
c) Claims, disputes, legal or bank restrictions need to be resolved.
d) Funds pledged for collateral or other purposes need to be released.
4. Overdrawn accounts need to be brought back to zero or a positive balance. This information may help you avoid additional transactions and fees:
a) If your account is enrolled in the optional Debit Card Overdraft Service you can speak to a banker to not enroll.
b) Review your statements for automatic transactions and cancel them by contacting the merchant(s).
c) When you have a previously authorized transaction, such as ATM and debit card transactions, transfers, and Wells Fargo Online Bill Pay transactions, presented for payment and your account doesn’t have enough money, we will pay the item(s) into overdraft and an overdraft fee may be assessed.
d) When checks and checking account automatic payments (ACH) are presented for payment and your account doesn’t have enough money, we may pay the item(s) into overdraft or return the item(s) unpaid and overdraft or return item (Non-Sufficient Funds/NSF) fees may be assessed, which may prevent your account from closing as requested.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.