Sooner or later, there will be a problem with your school’s bank account. While the best time to plan for it is when there is no problem, whether you’re having a problem right now, or just planning contingencies, here is the escalation process for resolving issues with a bank or financial institution.

Online Self Service

First, sign on to view the bank account. Look for clues to see if there is a reasonable (and hopefully temporary) cause for the problem. Look for an outage notification before or after login. Look for a secure message noting a problem or action required. Look for an alert, overdraft, hold, or other issue. If there is an issue, see if it is something you can fix yourself. Do you need to respond to the secure message? Do you need to wait an hour for the outage to end? Did you remember to activate that new debit card? Depending on the problem, there may be a request you can submit to fix the issue: check the help pages or FAQs. If you aren’t able to fix it, note your observations and move on to the next step.

Online Customer Support

Second, contact customer support through secure messaging, secure chat, or call customer service. Explain the problems you have experienced and any observations from the online system and give the employee a chance to help. If the problem cannot be resolved over the phone, get a request or ticket number, an expected timeline on a fix, and instructions on who to contact if it remains unresolved.

If the expected timeline isn’t met, contact customer service and get an update to determine whether there is reason to believe a fix is likely, if so, give them a bit more time. If at any point, customer support is unhelpful, evasive, or seems to make no progress, move on to the next step. (Some issues cannot be resolved except in person for security purposes. For example, if they think your account is compromised, you will probably need to visit the bank.)

Local Branch Customer Service

After exhausting the second level of support, go to the local bank branch with your photo ID and any supporting documentation that may be relevant. Explain the issue and see if an employee on-site can fix it or initiate a fix via an escalation process. This is likely to work the vast majority of the time, and if it does, you will have the peace of mind associated with having a local hero. Continue to work with the local branch as long as you continue to have confidence in their ability to fix the issue.

Unfortunately, some institutions do not have a local bank branch, such as a credit card company or online-only bank. However, there may still be an office you can visit. Some online-only banks have local offices that are open by appointment only. Others may have partner relationships with banks who assist with in person support. If this doesn’t apply, your next escalation will be via mail.

Customer Service By Mail

After exhausting other options, move on to customer service by mail. Depending on the situation, consider involving an attorney if you have not already. Print any applicable forms from the website or as directed by customer service. If there is no applicable form, or the form is inadequate to explain the matter, write a letter explaining the issue. Provide any relevant documents that may apply to your issue, such as DBA or EIN documents, but do not send originals. Send the letter with tracking so you know when they have received it. If you don’t hear back within a week or two, keep escalating as follows.

Special Escalations for Special Institutions

While most institutions are highly professional, some institutions are especially difficult to get customer support from. Examples of this are online-only institutions that heavily rely on AI or have otherwise attempted to automate everything without a live-support option. In some cases, you may have difficulty locating a working phone number, a support email address, or a relevant mailing address. This is incredibly frustrating and suggests you may be dealing with a highly dysfunctional customer support organization. Chances are, others have experienced similar issues. Search the Internet for bank-specific tips and workarounds they’ve shared online.

If you remain stuck, you may want to escalate to a regulatory agency. Depending on the institution, this may be your state attorney general, the Consumer Financial Protection Bureau, or the Office of the Comptroller of the Currency (see Resources list at the bottom of the article). You might also consider asking local news organizations for assistance. Although the situation may seem hopeless, you can break this logjam with time and persistence. As you work on fixing the acute issue, you may consider establishing a relationship with a replacement institution that can better serve your school.

Close the Account

If it becomes clear that the problem cannot be resolved, or if the resolution was unacceptable, the next step is to make a plan to close the account. For a school account, this must be discussed and planned with other stakeholders in your organization. Document why the account needs to close, for instance the issue was intractable, systemic, and unacceptable. If the consensus is to close the account, you will need to develop a plan with stakeholders. Determine the answers to each of these items:

  • Does the school need another bank account or are there enough accounts to close this one without needing another? If opening a new account, what are the requirements for the new account? Does anyone have a recommendation on a solid bank to use?
  • How will funds move from the old account to the replacement? When should the funds move and what is the transit time?
  • What data must be archived from the old account? Who will verify all history is captured before closing the account?
  • What are the impacts of closing the account? Who will be impacted? How will they be notified?
  • How long will it take to get the replacement account configured so that it can replace the old one? Does the team need assistance in configuring the new account?
  • What is the process to close the account per the bank’s process? (Typically, you must go to the local branch.)
  • When should the account closure occur? Make a checklist of tasks to complete before closing the account so nothing is missed.

Document the plan in writing, listing out who is doing what tasks and when, state who agreed to the plan, email the plan to all stakeholders. Make sure to create an ample paper trail for posterity.

Final Thoughts

Problems like these are exhausting, but by knowing your next steps, you can focus your energy on the solution.

Resources

Government Agencies

Other Organizations