During the summer, many banks and other financial organizations send out a large number of letters using the phrase “expired.” It’s practically become an annual tradition at the start of the summer vacation. What does it mean when something is “expired”? This statement denotes that the bank has decided to let the loan lapse and will not process it. If the funds have not been received for more than a month, most banks will let the loan default. They are only willing to let the loan lapse if they are doubtful whether or not the cash will be available.

While it is true that you can close your account and receive your funds after the loan expires, this is rarely a sensible decision. The bank will usually do a thorough examination of your finances to decide whether you have sufficient means to pay off the loan. Closing your account can only make issues worse if you have a lot of unpaid invoices. If you close your account, you may find yourself with more troubles than you bargained for when it comes to repaying your loan.