Sunday, June 26
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Know Your Rights as a Checking Account Holder

 

Having a checking account means that you can withdraw cash from an ATM, write checks, or make payments using your card. You can also make direct deposits of your paycheck. A checking account offers a convenient way to handle your financial transactions. 

If you want to open a new account, you can find the best free checking accounts online. It is helpful to know your rights as a checking account holder. 

Proper Identification

As a current account holder, the bank must be able to prove your identity. Being able to identify customers is vital to preventing criminal activities. The law requires banks and credit unions to obtain documents to prove the customers’ identity. The banks keep the documents, but they must protect customers’ data and never give your details without your consent. 

Changes to Your Account 

The bank can change the terms and conditions of your current account. However, you will have to receive a notification before making the changes. You will receive two months’ notice before the implementation. It will give you time to decide whether to comply, make alternative arrangements, or close your account. 

Freezing Your Account

The bank can freeze or block your account, but they must give you a reason. The bank may block your account if they suspect fraud or illegal activities. If criminals have hacked your account, freezing it will help protect you. The bank will contact you as soon as possible after going through the proper channels. If your account has been dormant for a period, the bank can close it. 

Transferring Money From Your Account

If you have more than one account in the same bank, funds from one account can offset due payments. The bank can take money from one account in credit and transfer it to the other. There are ways to stop automatic debits from your current account. If the bank makes incorrect payments or mistakes, you should get a refund. The bank must make refunds for any wrong transactions. 

Reducing Interest Rates 

The bank can reduce interest rates for current accounts. However, the bank has to inform its customers before slashing interests. Reducing interest rates can affect your ability to pay your bills and meet your expenses. You will receive two months’ notice before the bank implements any decisions that will affect your account.

Denied Checking Account Application 

Your bank may deny your application for a checking account due to your past credit history. You can obtain negative information about your bank account history from reporting companies like ChexSystems. 

If you have an unpaid balance from a previous account, the information is available to all banks. It can make it difficult to open an account or get credit. To get a copy of the report, you can contact the reporting company. 

Conclusion

It is essential to monitor your current account. Contact your bank immediately if you notice any transactions or payments you did not authorize. Check your agreement to get more information about your account.

Sources:

https://www.occ.gov/topics/consumers-and-communities/consumer-protection/depository-services/checking-accounts.html

https://www.theguardian.com/money/2010/aug/28/bank-accounts-know-your-rights

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