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Zombie Accounts Will Now Remain Deceased At Bofa Zombie Accounts Will Now Remain Deceased At Bofa March 22, 2014 | Author: Cornelius Nunev | Posted in Business
Bank of America claims it will put a figurative bullet in the head of its so-called “zombie accounts,” to keep them dead permanently. It will no longer allow electronic credits or debits to accounts that have already been closed, producing charges and other issues for unaware consumers.


No more zombie accounts around


All accounts that have been previously closed and are still sending electronic transactions for one reason or another at Bank of America will no longer be revived.


In May, a Consumers Union post pointed out the “zombie account” practice and said it should stop. It said that customers do not have the choice to switch accounts when these kinds of things happen.


According to Consumers Union, B of A and Chase were the only two large banks who participated in reviving old accounts like this, and B of A has finally decided to quit the practice. Account holders have to pay unpredicted maintenance charges and fines when a deceased account is reopened without any notice.


The changing of banks


The issue occurs when customers are not switching banks properly, according to B of A spokeswoman Betty Riess:


“As always, we remind customers to allow time for outstanding items to clear the account, and make changes to automatic payments and credits before closing the account.”


Last year, when Bank of America publicized it would be charging charges for debit transactions Cameron Borthwick-Jackson Manchester United Jersey , many American consumers had had enough, prompting them to switch banks. According to a recent release from Consumer Reports, 20 percent of American customers imagined about switch banks in the last year. However, 63 percent of them say they were daunted by problems such as the best way to deal with the transfer of electronic payments.


Just the tip of the iceberg


B of A was given applause from Customers Union attorney Suzanne Martindale, but she pointed out that there is more to do:


“While this is a welcomed change in policy, consumers at Bank of America and other banks continue to face a myriad of obstacles that can make switching to a new financial institution a time-consuming mess. That’s why we need Congress and the Consumer Financial Protection Bureau to enact reforms that make it easier for consumers to move their money.”


In order to make it easier for consumers to switch banks, the Consumer Financial Protection Bureau is considering brand new policies for banks. This might contain adoption of portable account numbers that can transfer between banks, prohibiting unfair fines and reducing check hold times.


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