Have you ever been in a situation where your bank account is frozen or ever felt the embarrassment when you get to know your debit card is not working after purchasing something? I have seen many people who don’t know why their bank account is frozen and how they can unfreeze it.
So, I have decided to put all the related information about how long does it take to unfreeze a bank account to make it easy for you. There can be numerous reasons why your financial institution or bank freezes your account. The time required to unfreeze an account depends on the particular bank’s policy and when the process of unfreezing is initiated either by the client or bank. When the account holder requests to release the freeze, the bank reactivates the account immediately.
When the bank believes your account is compromised, it can freeze your account. Your bank regulates your account, and if they suspect any red flags are raised, they can stop the functionality of your account. You cannot make any transaction or withdraw money from the frozen account. Keep reading to find out the process of how to unfreeze a bank account.
But first, you should be aware of all the possible reasons why your bank account gets frozen. So, you might know how to tackle the problem accordingly.
Reason For Freezing An Account
Banks can freeze the account at the account holder’s request if they suspect anything wrong or lost their debit or credit card. Card issuer companies can request your bank to stop your account if you have any unpaid debts. They need to show an authorized court judgment for a debt written against you. Bank can freeze your account if it’s been inactive for several years. Moreover, if any fraudulent transaction takes place from the account, the bank can freeze the account as soon as possible without informing the account holder. Another reason can be if your spending pattern does not match the usual, the bank can suspect your account has been hacked. In such a case, the account will be frozen temporarily.
Now getting back to the main topic, let’s see how long does it take to unfreeze a bank account. If you don’t know how to release the freeze from your bank account, wrap on and keep reading so you won’t get astonished by the procedure the bank told you on unfreezing the account.
Removing a Freeze From a Bank Account
Note that the account can still receive incoming payments even when frozen. However, you cannot withdraw or transfer funds to other accounts from an account that account. If you get the news about your account being frozen, the first thing you need to know is to tackle why your bank account is frozen. After knowing the reason, you will quickly become acquainted with how to unfreeze your account.
When Will My Bank Account Be Unfrozen?
You will probably have to go to the bank to unfreeze your account. It will be slightly problematic to do it over the phone because the chances of hackers declaring themselves as account holders are high, which can put the security of your money at risk.
The bank will unfreeze your account immediately after you give a sufficient reason for any unusual activity happening through your account. Once your account is active again, you can easily withdraw and use the available funds. On a general note, an account remains frozen until the account holder visits the branch; this can create many problems for people who have a bank account abroad.
Also Read: How Long Does a Pending Direct Deposit Take?
If your account is frozen due to unpaid debts, there is not much your bank can do to assist you unless you settle all the debts with the creditors. The credit card company will continue to take the money owed from the account.
Now you get an idea of how long does it take to unfreeze a bank account and your rights when your bank freezes your account. Moving further, now you might want to know what happens if your account gets frozen.
Consequences of The Frozen Account
When a bank account is frozen, it cannot be credited, or deposited money cannot be posted. If direct deposits are made to a frozen account, they will get rejected and returned to the account from which the transaction was completed. A frozen account does not permit any debit transactions. Account freezes are generally not permanent and require a specific action to be done to be lifted.
How long does it take to unfreeze a bank account? The bank will start the process as soon as you fulfill all their requirements or settle the unpaid debts. Now you may want to know the alternative remedies to a frozen account. Disconnecting your debit card from the account will prevent it from getting stolen by a thief. Abandoning online access can put a full stop to unauthorized internet-based transactions. If you want access to the funds in a frozen account immediately, you can make another bank account and transfer all the funds to the active account.
List of commonly asked questions about “How Long Does It Take To Unfreeze a Bank Account”
Q1. How Can I Activate My Frozen Account?
It depends on the reason why your bank freezes your account. If this is due to the fixed amount, you can unfreeze it by depositing or making any transaction from it. If it is due to your unsorted debts or suspicious activity, you can unfreeze it after settling it with the card issuer or clearing any doubts about fraudulent transactions.
Q2. Can a Bank Freeze My Account Without Notifying Me?
Yes, your bank can freeze your account without notifying you if it receives an order to do so from a court. The bank must freeze it after getting a court judgment without informing you.
Q3. What Happens When An Account is Frozen?
The account holder is unable to withdraw money from the frozen account. It does not allow any debit transactions. However, you can make a deposit or incoming payments to the frozen account.