You cannot freeze any bank account permanently. So if you want to unfreeze your bank account for any good reason, then read this article. Due to frozen accounts, there are many inconveniences like transaction stoppage, no withdrawals, no check transactions, etc. This article below has clear information about its reasons, unfreezing methods, prevention, etc.
About unfreezing bank account:
Every person uses different kinds of accounts from different banks. A bank account is one of the important financial management in everyone’s life. Due to various reasons, many banks freeze their customer’s bank accounts. This leads to transaction failure, no check transitions, no withdrawals, etc. A frozen account causes many major inconveniences and disturbances to the account owners. Here you can learn more about it.
Most banks freeze their customer accounts due to suspicion or if any illegal activity is noticed. They notice all the red flags in the account holder’s banking history and freeze them. You cannot withdraw money from any medium during your frozen account period. Some funds are exceptional from freezing accounts. They are social security funds, government funds, disability benefits, unemployed funds, child support, and private pensions. You can unfreeze a bank account by reading this article.
Reasons for freezing bank account:
Many reasons lead banks to freeze bank accounts, which causes major inconvenience. You can unfreeze a bank account, but it takes time and effort. By knowing the reasons, you can avoid them. The reasons are,
- Loan debts: This is the major problem for freezing accounts. Whenever you take any loan from any bank, it is important to repay the debt correctly. Due to irregular repayments, there is a chance of freezing.
- Tax is due: Paying tax in time can lead to account freezing.
- Prolonged account inactivity: Whenever the account owner doesn’t use their account for a long time, it will freeze the account. So use the account from time to time.
- Suspicious activity: Every bank always checks on the account owners’ bank history
Differences between a frozen closed and suspended bank account:
The major difference between frozen, closed, and suspended bank accounts are,
For many reasons, a frozen bank account is when the bank freezes an account. While freezing time transactions, withdrawals are not possible from that account. You can unfreeze a bank account by following some measures.
A closed account means a bank account that is closed permanently. You cant reopen the closed account.
A suspended account means you can use the bank but with some limits. Ther transactions are possible sometimes and up to a certain limit.
How to unfreeze a bank account?
A bank account can be frozen due to many reasons. You can unfreeze a bank account differently by different processes.
Unfreeze a suspiciously frozen account: If the reason for your frozen account is suspicious, call the bank and clarify your bank cavity. You can unfreeze the account just by answering a few security questions. Provide the verification code, digital 2-factor authentication, or different forms of ID.
You can visit the bank and converse with them to resolve the issue quickly. Explain clearly the situation and make the process. After all the investigation and verification, there is a chance for unfreezing if there is no fraud.
Due to dept: If your account got frozen due to your dept, there is little to do. You can file bankruptcy so that the collection can halt for some time. But filing bankruptcy only sometimes helps. You need to provide all the documents that show valid reasons and activity. This must be the last option to unfreeze an account.
How to prevent freezing a bank account?
We always know that ‘Prevention is better than cure”. So worrying about the unfreezing processes can prevent an account from getting frozen. Even if it is frozen, you can unfreeze a bank account by following the steps in this article. Some of the ways to prevent this are,
- Talk to a lawyer about the bank activity regularly.
- Pay attention to the debt collectors, which is the main reason for getting frozen.
- Pay all the debts correctly.
- You can avoid it by using different accounts for business and personal use.
Frequently asked questions(FAQs):
There are several reasons for a frozen account, and the unfreezing options differ for every reason.
Yes, it is possible to unfreeze any bank account by following several steps.
There is no specific time for that. It can be unfrozen just in 3 days, and in some cases, it takes several months.
No, we cannot open a closed account bank as it is permanently closed.