Question of the day, can you close a frozen bank account?
This is another popular question in this type of bank account issue. How possible a bank customer can close it’s frozen bank, or withdraw the money and close the account.
It is so painful to see your bank account frozen, especially if there’s a sum amount of money in the account. Sometimes one might contemplate on closing the bank account.
However, if you know the process or the procedure involved in bank account closure, you will definitely ask yourself this question.
How possible can you close a frozen bank account.
This is the main topic of this post, and I’m answering the question based on my experience after my bank account was frozened.
Can you close a frozen bank account
The answer is no. You can’t close a frozen bank account.
For a customer to close a bank account, your account need to be in good terms with the bank, there won’t be debts or outstanding balance. So how possible do you think you can close your frozen bank account.
In a frozen bank account, the bank customer won’t have access to the money in terms of debit withdrawal or even using the account to make payments. However, money can be deposited into the frozen account.
In the case that you have a sum amount of money in your frozen bank account, and you want to withdraw and close the account, I’m sorry that it is not possible. You need to first resolve the situation on your bank account before going further to close the account.
In some cases whereby a bank account was frozen through a court order because a creditor filed against you, the bank will pay the creditor from your bank account.
You can only have access to your money only if you resolved the problem and your account unfreezed.
Looking at the question again, can you close a frozen bank account, that is one hundred percent impossible to do.
Sometimes the bank customer can chose to abandon the frozen bank account and open a new one. If a creditor happens to know about the new account, bank will also freeze the account as long as the creditor has a court order.
If the reason why bank freezed your account is because of suspicious activity, you need to go to the bank and clear things up, unless you know you’re doing something illegal or fishy.
In this case, you still can’t close your account but you can chose to let the account go, and forfeit the money in the account.
How do you know when your bank account is frozen
You can know that your bank account is frozen when you can’t withdraw money from the account, or use the money to make payments. Generally, debit transactions won’t go through on the bank.
At first you will definitely get confused on what is actually causing the problem. This will prompt you to contact your bank, from there you will got to know that your bank account is frozen.
Generally banks don’t notify or inform a customer that his or her bank account is frozen, and this can be so annoying. I’ve been into this before, my bank account was frozen without my notice or the bank informing me about it. I got to know when all the debit transactions failed, and I called my account manager.
From there I got to know that my bank account was frozen because of invalid home address.
Going back to the question, how do you know when your bank account is frozen?
You can know that your bank account is frozen when all debit transactions fails, but cash deposit is going through. Though you need to contact your bank for a confirmation.
Remember, we’re still in the topic of this post, can you close a frozen bank account.
What can i do if my bank account is frozen
First you need to ask the bank the reason why your bank account was freezed, from there you will know the steps to take.
In my own case, my account was frozen because of invalid home address, and I went to the bank to rectify the problem. Afterwards the issue was resolved and the restriction was removed from my account.
In the case of a court order by a creditor, it is better to sort things out with the creditor or probably pay off your debts. However, in the case of a creditor through a court order freezing your bank account, the bank is liable to pay te creditor from your bank account with or without your consent.
In the case of a suspicious activity or illegal sources of funds, you may need to get a lawyer especially if you can’t clear yourself. This type is usually very tough and mostly requires you to get a lawyer to resolve the problem.
This is what to do if bank account is frozen. You need to be calm and don’t panic, contact the bank and find out the reason why your bank account was freezed.
If your bank account is frozen can you close it
This question is the same with can you close a frozen bank account?
That is not possible. You cannot close your frozened bank account. However, you can chose to leave or abandon the account if you don’t fancy going through the process of resolving the issue with the bank account.
Though I don’t recommend doing this at all. It won’t give a good impression of you.
If your account is freezed by the bank, kindly resolve the issue and then you can finally close the bank account especially if you’re pissed off with what happened.
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Why would a bank account be frozen?
There are different reasons why bank freeze a bank account, but the popular ones include the followings;
- Over unpaid debts to a creditor
- Suspicious activity
- Inability to validate a customer’s address
Banks freezing a customer’s bank account over unpaid debts and suspicious activity is very common and popular.
If a customer deposit a large sum amount of money into its account, and the source of the fund is not known to the bank, they will raise the red flag. However, if the bank customer didn’t come up to clear the air and state the source of fund, bank will automatically freeze the account.
In the case of unpaid debt to the creditor, this goes through the court order. Bank will freeze the customer’s bank account to prevent the customer from making withdrawal or probably prevent a debit transaction from the customer’s account.
Afterwards pay the creditor the debts through the customers bank account. In terms of insufficient fund, the bank will still put the customers bank account on hold.
Before I go let repeat this again;
Can you close a frozen bank account?
Absolutely no. You cannot close a frozen bank account. Before you can do that, you will need to first resolve the issue and after your bank account is unfrozen, you can then permanently close the account.
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