Friday, June 2, 2023

Frozen Bank Accounts

What exactly is a frozen account?

Frozen account is referred to as an account where a depositor can neither make withdrawals nor make purchases. The main reason for freezing the account can be if the account holder does not pay for his purchases which are charged from his account. Deposits can be made, but the money that has been deposited cannot be used, as it has been debited from the account. Even checks written against the account will be of no good as long as the account remains frozen.

Title – Who can freeze bank accounts?

Whenever you engage in a transaction with a company, and you have to pay for the transaction. This creates debt. The person to whom you owe money becomes your creditor. For example, if you don’t make payments to your creditor when required, the creditor can freeze your account. All the creditor has to do is get a judgment against you. When this happens your account is closed until you clear your outstanding balance.

Usually when your account is frozen, you will receive a notice from your bank explaining your status, and what you need to do to unfreeze it. There should be a lawyer’s number listed. You will need to enlist the services of a lawyer to prevent you from opening your bank account. Even if your bank account is frozen, no creditor is allowed to withdraw money just because there is money out there. To receive how much money is owed, the creditor needs to obtain a turnover order from a judge.

If your bank account is frozen during the time you write checks against your account, you must take steps to contact all the people to whom you sent the checks. This is because those checks will bounce, as the money is not usable. Just contact people and tell them what happened. Explain that your account was temporarily placed in frozen status, and you are taking steps to remove it. Ask them to hold the check until you inform them to the contrary. Once you contact them, they can cash the cheque.

Until you resolve your situation, you will need to refrain from using your bank account for the foreseeable future. This means you cannot make any deposits and if you have direct deposit you will need to cancel it. If you have bills to pay, ask a friend or family member to do it for you.

Heading – Can the government freeze your bank account?

Normally the government cannot freeze a bank account. Since you’re not actually buying anything directly from them, they have no way of collecting your money. Also, the government as an institution does not own or own any banks. They use one. That’s how they pay their bills. But technically speaking, they have no way of collecting your money.

The government can freeze an account only for security reasons. For example, if they suspect terrorists are using money in the account, the government can step in and freeze the account so the money can’t be used.


Bank of America – 1-800-432-1000

JP Morgan – 1-800-935-9935

Wachovia Bank – 1-866-647-7365

Wells Fargo Bank – 1-866-647-7365

Citibank – 1-800-950-5114

Washington Mutual Bank – 1-800-788-7000

SunTrust Bank – 1-800-786-8787

US Bank – 1-800-872-2657

Area Bank – 1-800-734-4667

Branch Banking & Trust Company – 1-800-226-5228

National City Bank – 1-888-622-4932

HSBC Bank USA – 1-800-975-4722

World Savings Bank, FSB – 1-866-647-7365

Countrywide Bank – 1-800-841-9986

PNC Bank – 1-888-PNC-Bank

KeyBank – 1-800-539-2968

ING Bank – 1-800-ING-DIRECT

Merrill Lynch Bank USA – 212-449-1000

Sovereign Bank – 1-877-768-2265

Comerica Bank – 1-800-292-1300

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