Credit firms sometimes feel that a customer is misusing her account and creating losses for the firm. In such cases, the firm has every right to close her account. However, it has to follow the proper protocol. Say Mrs. X has opened a savings account with a particular firm. She constantly exceeds the limit on her account and does not repay the amount on time. The firm has every right to close her account, after warning Mrs. X of that intention. The firm can set conditions that would allow the reopening of the account.
A customer may close his account with any given firm if the services do not meet his expectations. He might close it because of high rates charged by the firm, or because of general dissatisfaction with the customer care. Whatever the reason, he should give prior notice before closing his account.
When it comes to credit card accounts, a customer can decide to close her account because of overspending. The mentality of "plastic money" affects a lot of people. Being able to spend money that you don't actually have in your pocket is an incentive to spend more than you should. Some people reach the limits of their credit cards by buying things they don't need.
Firms can close down a customer's account if it remains inactive for a long time. In the case of bank accounts, the bank considers an account inactive after two years of dormancy. The bank will issue a dormancy notice, and if the account still remains inactive the bank has the right to close it down.