You’ve Been Debanked.
Now What?!
You got a letter from your bank saying that they’ve reviewed your account and will be closing it in 14 days. Or maybe you called customer support when you were suddenly locked out of your accounts only to find out that they were closed without warning. What should you do now?!
STEP 1
Remember that this is not your fault
If your bank account was just closed or frozen, your first reaction is probably panic, followed by shame. The panic is understandable, but the shame is not yours to carry.
Banks close accounts tied to the adult industry every day, often with no warning and no real explanation. It happens to people with perfect payment histories, healthy account balances, and years of good standing with their bank.
Just remember: this isn't a reflection of your character, your finances, or anything you did wrong. You are not alone, and you do not deserve this.
STEP 2
Make a complaint with the bank
It almost certainly won’t change their decision, but if you haven't already, contact the bank to complain about the account closure. If you were notified by phone about the account closure, request written confirmation of the account closure and when the remaining balance will be returned to you!
Note: Government regulators request that you at least attempt to contact the bank to resolve the issue before filing a complaint. Even if you’re not sure you want to file an official complaint right now, it could be helpful down the road.
KEEP A RECORD
If you call or go in person, take notes about the day/time you spoke to someone, the name and job title of the person you spoke to, and what each of you said.
If you contact them in writing (email, online chat, etc.), note the dates you sent and received messages, the name and job title of the person you corresponded with, and what each of you said (screenshots work fine).
If you don't get a response from the bank after a few days, go ahead and move forward with the official complaint.
STEP 3
Gather your documentation
Collect everything you need to file an official complaint, including:
All written communications with the bank, especially the notice of account closure. Include any notes (or screenshots) from your follow up complaint to the bank, including the names and job titles of anyone you spoke to or messaged with.
A monthly statement for the account(s).
The name, phone number, email address, and mailing address associated with the account.
The name and address of your bank and the type of account(s) that were closed.
Even if you aren’t interested in taking action now, you may need this information later if there are errors in the reports banks use to decide whether to reject your new account application.
STEP 4
Use FSC’s tool to turn your documentation into an official complaint
FSC offers a free tool to turn your documentation into a detailed account of what happened and, if you like, send it directly to the banking regulator that oversees your (former) bank.
If you’re not ready to take that step yet, you can use it to create the report and send it to yourself for later.
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STEP 5
Figure out who to send your complaint to
If you didn’t send your official complaint directly to the banking regulator using the tool above, you’ll need to determine which one to send it to.
Is your bank is one of the 5 worst offenders?
Your regulator is the OCC (Office of the Comptroller of the Currency).
Was your account closed by a credit union?
Your regulator is the NCUA (National Credit Union Administration).
If your bank isn’t listed above, start by searching the FDIC’s bank database for your bank.
In the search results, find your bank’s primary regulator.
STEP 6
File your complaint
Now that you know who to complain to, you can use these links to begin filing your official complaint:
Bonus: no matter which regulator oversees your bank, you can file a complaint with the Consumer Finance Protection Bureau (CFPB).
STEP 7
Protect yourself
Stop direct deposits
If you’re expecting to receive a payment soon, make sure to reach out to whoever is sending you money to request cash or a physical check. Then, you’ll be able to make the deposit later – instead of having a direct deposit fail.
Cancel automatic payments
To avoid bouncing checks or missing bill payments, move any automatic payments linked to the closed account to a different account or cancel the automatic payment and find a way to make the payment manually.
Settle any outstanding balances
If your account has a negative balance, find out how to clear it. Negative balances will eventually be sent to a collection agency, which will probably hurt your credit score.
Additional Resources
Finding a New Account
It can be difficult to open new accounts after a closure. Some places to start:
🔎 FSC members – email us for assistance finding a new account!
🔎 Credit Union Locator – credit unions are sometimes a better bet than banks
🔎 Consumer Guide to Checking Account Denials – the Consumer Financial Protection Bureau’s advice for finding a new account if you’ve been denied