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Using Banks and Bank Accounts/Loss prevention closing entry


What happens once the account is closed and the last statement said loss prevention closing balance.  The account was closed because of some direct deposits into the account not in account holder name.  Will those funds be returned eventually to the where they came from?

Hi Janet,

It's usually a rare scenario that a bank closed the account without freezing the funds first and notifying the account holder.

I would probably think the balance went back to the sender of the direct deposit, if they are claiming it's fraud or wrong recipient.  The account holder needs to go to the Branch and Loss Prevention will be able to tell who has the funds.

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Retail and Commercial banking since 2002. Currently employed as an Assistant Vice President at a Commercial Bank.

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