A bank can close a checking or savings account without asking for permission, and sometimes the customer finds out only after a debit card stops working. That can create a particularly ugly problem if several thousand dollars were sitting in the account.
The bank closing the account does not generally mean it gets to keep your balance. The real headache involves figuring out when and how the bank will return the money, especially if the institution placed a hold while reviewing deposits, transfers, identity information, or suspected fraud. The CFPB has received complaints from consumers who say banks closed accounts abruptly and held funds for extended periods before mailing the money back.
