There are many situations in which a bank chooses to close the account of the customer. Furthermore, a bank is not answerable to anyone if it closes the account of the customer. However, in some cases the bank wants the customers to know their account has been closed so that they can take necessary actions to reopen it.
One of the most common reasons why banks close the accounts of their customers is the inactivity of the account. The accounts which have no activity are considered as a dormant account. The bank informs the customers about it by writing a letter.
Why banks write a letter informing customers about the closing of the account?
People usually have multiple accounts in the bank. They do it for a variety of purposes. Some people usually keep a separate account for saving and conducting transactions. However, we often see a lack of activity in some accounts. They usually stop using a particular account without informing the bank and that account then becomes dormant. Bank writes the letter to customers telling them about the closing of the account so that they might reconsider reopening it.
It is also important to remember that it is a policy of the bank to close those accounts that remain inactive for 6 months or more.
How to write this letter?
The bank is required to write this letter with a professional tone. For this purpose, the bank must consider adding the following details:
- Start about the account closing decision of bank:
Any person who holds an account in the bank must be informed about the decision of the bank regarding closing the account. The bank must mention the account number so that confusion can be avoided that may arise in case the recipient has multiple accounts in the same branch of the bank.
- State the reason:
After having informed the customer about the closing of the account, the bank should also tell the customer why the account has been closed. The bank should mention that it is the policy of the bank to close the account of those people who don’t seem to use their account for a considerable amount of time.
- End the letter properly:
The end of the letter matters a lot because it defines what options you are providing your account holder. You can give your contact details at the end if you think that the account holder might need to contact the bank for any query. If an account holder can open an account via phone call, specify it in the letter.
- Keep the tone neutral:
Although you are giving bad news to the customer, you need to stay neutral. You should not express sadness, anger, or any emotion via this letter.
- Write it briefly:
While writing this letter, one must keep the purpose of this letter in mind and then should add only those details that are necessary to be added. This will keep your letter to the point and brief.
To: Mr. XYZ
RE: Closure of bank account due to inactivity
Dear (name of the customer),
The bank has observed that there has been no transaction via your account (mention account number). Due to this inactivity for a prolonged time period, the bank has considered an account to be inactive, and therefore, the bank is closing your account as per the policy of the bank.
We are regretful to inform you that your account has been closed and you will not be able to perform any transaction from your account in our bank from now onwards. Please write us back if you want the account to be opened again.
ABC Bank values its customers a lot. We don’t want to cause inconvenience to our customers in any form. Feel free to contact us in case you have any queries regarding the closing of the account. Our helpline representatives will guide you in this regard.
Your designation in the bank
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