Home Lifestyle 3 Reasons Why Your Bank Account Would Get Frozen

3 Reasons Why Your Bank Account Would Get Frozen

by The Mind Blown

A few things might scare you, such as using your debit card and finding that the bank froze it. Banks and credit unions can freeze any card attached to an account if an issue affects your money. While you should get an alert or notice from the financial institution, it may not come until after you attempt to use your account.

Until you fix the problem or come out with a solution, the bank will not let you use your account. However, you cannot take out money or make a deposit. There are three common reasons why your bank account would get frozen. 

Unpaid Debt

According to SoFi Invest, a common reason for a frozen bank account is that you have an unpaid debt. Secured debt is a type of debt you secure with a piece of property, such as a loan you take out against your car. Unsecured debt is more common and includes hospital bills and credit cards. 

Many lenders work with collection agencies when they have borrowers who owe money. That agency will send letters to your home and call you to talk about your debt. If you ignore them, they have the right to go to court and file against you.

The judge in the case can find for the agency and issue a judgment that allows the agency to put a lien on your bank account. Banks can also freeze your account if you have student loans you didn’t pay or owe back child support.

If the judgment is for a large amount of money, the financial institution may close your account and send you a check for the balance.

Suspicious Activity

bank account

Banks will also freeze accounts if they believe suspicious activity on an account. Many financial institutions now send you alerts if they feel something is wrong with your account.

For example, if you always use your card in the same city, the bank might freeze your account if you suddenly make many purchases in a different city.

 A frozen bank account can also occur if the bank thinks there is a problem with a site you tried to buy from online. Most banks will release your funds once you call in and confirm that you still have your card.


Though you don’t need to use your bank account every day to keep it in good standing, banks can freeze accounts for inactivity. This usually depends on where you live, though.

States have different rules about how long the bank needs to keep your account open if you stop using it, ranging from one year to five years.

This helps heirs settle estates when someone passes away and ensures that people get the money they put in a bank for safekeeping. If the bank freezes your account for inactivity, you may need to make an in-person visit to take care of the issue.

If your bank account is frozen, there are steps you can take to make sure it stays active. The first step is to call your financial institution and talk with a representative about why the issue occurred.

You may need to provide additional information or verify that you still have your card in order to unfreeze your account.

With some types of debt, you may also be able to negotiate a payment plan that satisfies the judgment and gets your account unfrozen. In other cases, you might need to open up a new account at a different bank.

Final Words

A frozen bank account can ruin your day and leave you worried about how you’ll take care of your bills. Looking at the top three reasons your bank account would get frozen helps you learn what to do next.

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