Can my bank force me to keep my account open and charge me monthly fees because I have a overdrawn account?

UPDATED: Feb 10, 2012

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Can my bank force me to keep my account open and charge me monthly fees because I have a overdrawn account?

I would like to work on paying the balance.

Asked on February 10, 2012 under Bankruptcy Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You need to check the terms and conditions of the account agreement(s) you've signed with the bank; if those agreements prevent you from closing an account as long as it is overdrawn or there is an unpaid balance on it, or give the bank the discretion to require you to keep the account open in certain circumstances like this, then they can require you to do this. If the agreements are silent on the subject, then you should be able to close the account.

If the account agreements provide for the payment of monthly fees, then as long as the account is open, they can charge them.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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