Consumer Financial Protection Bureau Warns Big Financial Institutions May be Assessing Unlawful Charges on Previously Closed Accounts

The Consumer Financial Protection Bureau (CPFB) has received reports from consumers across the nation that major financial institutions are reopening closed deposit accounts and charging overdraft, nonsufficient funds (NSF), and maintenance fees after the account has already been closed. After consumers have closed deposit accounts, financial institutions will then unilaterally reopen those accounts to process debits or deposits, which can lead to unavoidable assessment of fees. This practice constitutes an unfair practice under the Consumer Financial Protection Act (CFPA). According to the Consumer Financial Protection Bureau, this practice may impose substantial injury on consumers that they cannot reasonably avoid and that is not outweighed by countervailing benefits to consumers or competition.

In addition to subjecting consumers to excess fees, when a financial institution processes a credit through an account that has been unilaterally reopened by the bank or credit union, the consumer’s funds may become available to third parties, including third parties who do not have permission to access the funds, according to the CPFB. Individuals who have had their accounts reopened without their consent may be eligible to join a lawsuit with the McCune Law Group.

Loyal Consumers Being Punished for Closing Their Accounts

Under the CFPA, an act or practice is unfair when it causes or is likely to cause consumers substantial injury that is not reasonably avoidable by consumers and the injury is not outweighed by countervailing benefits to consumers or competition.

After a consumer has closed a deposit account, a financial institution’s act of unilaterally reopening that account upon receiving a debit or deposit may cause monetary harm to the consumer. Financial institutions frequently charge fees after they reopen an account. For example, consumers may incur penalty fees when an account that they closed is reopened by the financial institution after receiving a debit or deposit. Since financial institutions typically require a zero balance to close an account, reopening a closed account to process a debit is likely to result in consumers incurring penalty fees.

If your financial institution reopened your deposit account and charged you a fee, join the lawsuit by contacting our Financial Services attorneys today by completing the form or by calling (909) 345-8110.

Frequently Asked Questions


Can a financial institution reopen a deposit account without the account holders’ consent?


No, a financial institution cannot reopen a deposit account without the account holder’s consent. Doing so would be a violation of the account holder’s rights and could potentially be considered fraud. If an account has been closed by the account holder, the financial institution cannot reopen the account without explicit permission.

A financial institution may want to reopen a closed deposit account to generate more revenue and increase its customer base. However, if the account holder did not provide consent to reopen the account, it would be considered unlawful and could result in legal consequences for the financial institution.

If a financial institution reopens a deposit account without the account holder’s consent, it could face legal action and financial penalties. Additionally, the institution’s reputation could be damaged, which could result in a loss of customers and revenue.

If a financial institution reopens a deposit account without the account holder’s consent, the account holder should contact the institution and demand that the account be closed again. If the institution refuses to do so, the account holder should seek legal advice and consider filing a complaint with the appropriate regulatory agency.

How to Start a Case

If your financial institution has reopened a deposit account and charged an overdraft, NSF, or other maintenance fees, you may have a case. The Financial Services attorneys of the McCune Law Group can discuss your potential case and provide guidance, if appropriate. Here is what the process will look like:

  • Fill out our contact form with your information 
  • Set up your free consultation 
  • Meet with our Financial Services team 
  • Discuss your potential case 
  • Discuss your next steps 

Contact us today for a free consultation by calling (909) 345-8110 or by completing the form.

Highly Experienced Financial Services Class Action Litigators

When financial institutions are only interested in protecting their bottom line at the expense of their customers we are here to help. Our Class Action lawyers are familiar with the tactics used by financial institutions and can effectively level the playing field by competently representing the interests of consumers who have been wronged.

Complete our form or call (909) 345-8110 for a free consultation!

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