Finance

How Can You Close Bank Account with Negative Balance?

How Can You Close Bank Account with Negative Balance?

There are simply too many banks that are operating in every country. And if we look into the data for the whole world. There are more than enough banks which are striving to get new customers or account holders I can say. So if you decide to change your bank where you hold your primary account then it won’t be a huge problem for you. But to do that the recommended method is to first close your bank account(s) which you are no more using. It gets complicated to manage multiple bank accounts.

But what if you have a negative balance in your bank account. What are the further steps you should take to close your bank account? These are the questions I am going to answer this article. When we open a bank account we have to sign a number of legal documents. These are nothing but the legal agreement between you and the bank with which you are opening the bank account. This is for both the documents you have physically signed as well as the ones you have electronically signed. Within those documents, there will be a clause which deals with the negative balance.

What does it mean?

It means you have already signed the agreement with the bank which says you will pay all the negative balance and dues. That are pending in your bank account when you wish to break your relationship with the bank account.

What Steps Should You Take While Closing Such Account?

Now we know how these things and work, they are nothing but the legal contract between you and the bank with which you are holding the bank account. You should know that even if there is no such clause in the agreement you are bind to Quasi-contract. And as per the quasi-contract you have to pay the dues and all the negative balance in your bank account.

So what you have to do now?

First, you have to look into the statement of your bank account and understand why you have got the negative balance in your account. There are a number of reasons why this has happened.

If it is because of the overdraft you had taken from the bank then you have to pay the negative balance in any case.

And if the negative balance is due to the loan you had taken from the bank then you have to pay it there is no other choice with you.

In third place, if the negative balance is due to the non-maintenance of balance in your account. Then the bank may give you some concession. This means the bank may give you a discount on the negative balance you have in the account.

This is the reason why you should look into the statement and understand why you have got a negative balance in your bank account. If you do not understand the reason why you have got a negative balance. Then

I recommended you to give your local branch of the bank a visit and talk to the people working there regarding this balance. They will explain to you everything about the negative balance you have got.

So how can you close a bank account with a negative balance?

Understand the reason why you have got a negative balance in your bank account. Contact your bank and ask if they can provide you some concession. After that pay the negative balance and start the process of closing your bank account.

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