Question

There are several reasons why a customer’s account may become irregular. In the ma- jority of cases, these are brought about by a change in the customer’s circumstances and/or an inability on the customer’s part to manage their finances. Explain any five (5) reasons.

Answer 1

5 reason for inactivation of your bank account-

No Transaction Done For A Long Period

If your current/savings account does not observe any transaction over a period of 12 months, it gets reported as irregular or inactive account. Thereafter, if that account continues to remain irregular for another 12 months, it is reclassified as dormant account.

Debt Collection

If you have outstanding debt, your creditors can be able to freeze your bank account, which causes it to appear irregular. You won't be able to get funds or make payments. A creditor's privilege to freeze your bank account depends on your country's laws, but your bank should notify you of the action and give details about which funds are exempt from the freeze and accessible for you to use.

Account Cancellation

If you request that your bank to close your account, it will be stated as deactivated. The account can still appear for a short period of time on your online banking site or when you put an ATM in the machine, but you won't be able to credit or withdraw the funds. Some accounts will deactivate spontaneously when you roll them with new accounts. i.e. if you renew a certificate of deposit or money market account, and do changes that outcome in a new account number, the old version of the account will no longer be working.

Technical Issues

Bank accounts are prone to technical problems that can result temporary deactivation. This may occur when someone accesses the bank's computer system without permission. It can also occur when the bank's servers, which store consumer data and account details, encounter technical problems. If your computer or home network have issues getting data, your account may appear inactive or irregular, but once your service is restated your account will function like before.

Avoiding Fraud

In some cases, notification of your bank account's deactivation may be a fraudulent attempt to get your personal details. In an Internet scheme regarrded as phishing, an individual may send you an mail that looks to come from your bank. The message will usually state that your account is deactivated and tell you to write back supplying personal details, such as your account number, ATM number, name and address to restate the account. Check to see if your account is active by logging in online or calling your bank directly rather than replying to the email.