Using a new database, we document the determinants of involuntary consumer bank account closures. During 2001–2005, approximately 30 million debit accounts were involuntarily closed for excessive overdrafting. We focus on multiple factors to explain this phenomenon: household economics and...

Banks closed over 30 million debit/checking consumer accounts involuntarily in 2001-2005 for excessive overdrafts, with these former bank customers having limited or no subsequent access to the formal banking system. Using a new county-level database, we analyze the determinants of these...

The "Central Bank" series analyzes the use of information and product design for managing the counterparty risk of newly acquired customers. Central Bank, a mid-sized regional U.S. bank, was attempting to grow its customer base by increasing the number of new checking accounts. Like many banks,...

Using a new database, we document the determinants of involuntary consumer bank account closures. During 2001–2005, approximately 30 million debit accounts were involuntarily closed for excessive overdrafting. We focus on multiple factors to explain this phenomenon: household economics and...

SUBJECT AREAS: Banking, Commercial banking, Customer acquisition, Risk management.The quot;Central Bankquot; series analyzes the use of information and product design for managing the counterparty risk of newly acquired customers. Central Bank, a mid-sized regional U.S. bank, was attempting to...

Banks closed over 30 million debit/checking consumer accounts involuntarily in 2001-2005 for excessive overdrafts, with these former bank customers having limited or no subsequent access to the formal banking system. Using a new county-level database, we analyze the determinants of these...

Using a new database, we document the determinants of involuntary consumer bank account closures. During 2001–2005, approximately 30 million debit accounts were involuntarily closed for excessive overdrafting. We focus on multiple factors to explain this phenomenon: household economics and...