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Being able to access your bank account is a vital part of your financial life. This is especially true if you have ever overdrawn your account, as this can result in you being unable to withdraw money from the bank. It can also mean that you will not be able to pay for your bills and other expenses, which can lead to you incurring debts and repaying them over time.
It can be incredibly frustrating when you want to access your money but are unable to. You are unable to withdraw the money from your account, and the bank won't give you a reason why. This article will attempt to answer all those questions, and more. Let's find out.
What Does Freezing an Account Mean?
When you are unable to access your money, it is common for the bank to freeze your account. This means that you will not be able to withdraw any money from the account, and that any transactions will be canceled. The bank will usually give you a number of days to prove that you are able to pay for all of your bills before they unfreeze the account.
Why Would a Bank Deny Access to Money?
A bank can freeze an account if they believe that there is something wrong with it. They may have seen transactions that don't make sense, or have heard about someone attempting to commit fraud on their account. They may also freeze an account if they suspect that someone has stolen money from the account, and are trying to prevent any further financial losses.
To be more specific, however, here are the common reasons to getting your account frozen:
The bank suspects fraudulent activity
If the bank suspects that you are attempting to commit fraud on your account, they may freeze it. This can include the use of your account for money laundering, using your account to commit fraud, or any other illegal activity. This is done because the bank wants to protect itself from further financial losses.
The bank may also freeze your account if they suspect that you have stolen money from the account. This can include making unauthorized withdrawals, or even cashing a check that is not yours.
You have a lot of unpaid debts
If you have a lot of unpaid debts, the bank may freeze your account to prevent you from withdrawing money. This is because they want to protect themselves from financial losses, especially if you’re not showing any signs that you will be making the payments soon. They may have to go get a court judgment for this purpose.
You’ve been inactive too long
If you have been inactive for a long period of time, the bank may freeze your account. The exact amount of time before an account is deemed dormant varies wildly depending on where you live and which bank you're using. This can be anywhere between four to twenty four months, or in other words, up to two years.