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LSDefine
Simple English definitions for legal terms
closed account
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A quick definition of closed account:
A closed account is an account that can no longer have any more money added or taken out, but it can still be adjusted or used to pay off debts. It's like a piggy bank that you can't put any more coins into, but you can still take some out if you need to.A more thorough explanation:
A closed account is an account that no further credits or debits may be added to but that remains open for adjustment or setoff. For example, a credit card account that has been paid off and closed cannot be used for any further purchases or payments, but the account may remain open for a period of time to allow for any final adjustments or disputes.
Another example of a closed account is a bank account that has been closed by the account holder. The account will no longer be active, but any remaining funds may be transferred to another account or returned to the account holder.
Overall, a closed account is one that has been terminated and is no longer active for any further transactions.