The question you’re looking for, can a bank refuse a cash withdrawal from its customer?
I saw this question and picked it up cause I love the topic and the need to help people out in answering the question. How possible can a bank deny you access to your bank account or the money in your bank account?
This is a question of can a bank refuse a cash withdrawal is similar to ask if a bank can deny you your money.
Now, this comes in different ways, the method to which you’re withdrawing the money. Maybe through the atm, pos, or probably through the counter or teller. So I will explain this topic based on these three methods of cash withdrawal.
Can a bank refuse a cash withdrawal?
Generally, the bank cannot refuse a cash withdrawal for its customer cause it is obligatory that a bank customer has the right to the money in his or her bank account. However, there are things that can make a bank restrict cash withdrawal for a customer.
Now let me explain this question of can a bank refuse a cash withdrawal in three different ways;
1. By using the
If you as a bank customer using your debit card to make a withdrawal from the atm and the transaction declined or money did not dispense, it can be caused by a technical issue in the bank, or the bank has restricted or blocked your debit card.
In terms of technical issues, it is usually something of fifteen minutes to one hour and the problem will be resolved. But if your debit card was declined, it may be the fact that the bank detected fraudulent transactions or activity with the card and in turn blocked the card.
They usually do this to protect the customer from losing his or her money in the account.
Trying to make a withdrawal using the atm and it didn’t go through, you should immediately contact your bank and know the reason why it happened. Definitely, your bank will help you out with the problem.
2. POS withdrawal
POS withdrawal is the same as atm withdrawal, it may be caused by a technical issue or the bank blocking the customer’s debit card. Just like I said, kindly contact your bank and inform them about the situation with your debit card or bank account.
They will resolve the issue you’re having with your account.
3. Using the counter
This is where I will concentrate more to explain the question of can a bank refuse a cash withdrawal.
A bank indeed can restrict a customer from making a withdrawal from the counter for some of these reasons;
Frozen due to suspicious activity on the bank account
If the bank detects a suspicious activity especially during cash deposit or transfer on a customer’s bank account, the account will be flagged. Once the account is flagged, the bank will restrict any form of the debit transaction from occurring.
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In this case, the customer will be invited to the bank for questioning. If things are cleared up, the bank customer can make withdrawals or debit transactions from the bank account.
The bank account is garnished or levied
The second issue that will make a bank restrict cash withdrawal or debit transaction is in the case of bank account garnishment or levy.
Once a creditor using a judgment court order goes to a debtor’s bank account because of the debts owed by the debtor, the bank will freeze the customer’s bank account after the garnishment process is done and complete.
Aside from bank freezing a customer’s bank account over suspicious or fraudulent activity, bank account garnishment is another major case that makes a bank refuse a cash withdrawal for a customer.
When I saw this question of can a bank refuse a cash withdrawal, this is where my mind went to, maybe the account is garnished or frozen over suspicious activity.
The debit card being blocked or technical issues is the least problem of this issue cause it is something that can be rectified within fifteen minutes to one hour. So the major case of banks restricting a customer from making a withdrawal is major caused by a frozen bank account.
The best answer to this question can a bank refuse a cash withdrawal?
If yes, a bank can refuse a cash withdrawal if the customer’s bank account is frozen. Frozen can be caused by suspicious activity, fraudulent action, or the bank account is garnished or levied by a creditor.
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Exceed the amount of cash withdrawal
This is the third reason why the bank can refuse a cash withdrawal for a customer, the customer has exceeded the maximum withdrawal per day.
This can be quite surprising but it does happen, the bank refusing to give you the requested amount you wrote on the withdrawal slip. For example, you may need to withdraw $10,000 from your bank account and the bank will tell you I’m sorry, the maximum amount we can give you for today is $5000 and there’s nothing you can do about that.
This also goes to atm withdrawal, the bank imposing withdrawal limit though it is to secure a customer’s account as the atm withdrawal isn’t very secured.
This is the third answer to this question of can a bank refuse a cash withdrawal. Not exceeding the maximum withdrawal limit in a day.
Is it illegal for a bank to hold your money?
I don’t think it is illegal for a bank to hold a customer’s money cause there are reasons why banks do that. On opening a bank account, there are indemnity forms given to customers to sign, they usually state it on the indemnity form.
If a bank detects a fraudulent activity or becomes suspicious of a customer’s bank account, they have every right to hold the customer’s money. The same goes for the bank account garnished or levied by a creditor.
So I don’t think it is illegal for a bank to hold a customer’s money though they must have a valid reason for that. Note that the bank won’t hold a customer’s money without stating the reason for that, so if this is happening to you right now, contact your bank and know the reason why they do that.
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With all said, I do hope to properly answer your question of can a bank refuse a cash withdrawal. However, I will advise you to kindly contact your bank if you found yourself in this situation.