Frozen Bank Accounts

What exactly is a frozen account?

A frozen account is referred to as an account where no depositor can do either withdrawals or purchases. The main reason an account can be frozen is if the account holder does not pay for his purchases that are charged to his account. Deposits can be made, but any money that is deposited, cannot be used, for it is frozen with the account. Even checks that are written against the account will be no good, as long as the account stays frozen.

Heading – Who can freeze  bank  accounts?

Any time you engage in a transaction with a company, and you have to pay the transaction back. This creates debt. The person you owe money to becomes your creditor. As such, if you do not pay your creditor when required, the creditor can freeze your account. All the creditor has to do is place a judgment against you. When this happens your account becomes frozen until you pay what you owe.

Usually when your account has become frozen, you will receive a notice from your  bank , letting you know about your situation, and what you need to do to unfreeze it. There should be a number of a lawyer listed. You will have to enlist the services of a lawyer to get your  bank  account unfrozen. Even if your  bank  account is frozen, no creditor is allowed to withdraw money just because the money is there. To get what money is owed, the creditor needs to get a turnover order from a judge.

If during the time your  bank  account is frozen, you write checks against your account, you will have to take steps toward contacting everyone you sent checks to. This is because those checks will bounce, since the money is not useable. Just contact the people and let them know what happened. Explain that your account was temporarily placed in a frozen state, and that you are taking steps to unfreeze it. Just ask them to hold the checks until you notify them to the contrary. Once you contact them, they can then cash the checks.

Until you resolve your situation, you will need to avoid using your  bank  account for the foreseeable future. This means you cannot make any deposits and you also must cancel your direct deposit if you have one. If you do have bills to pay, ask a friend or family member to do it for you.

Heading – Can the government freeze your  bank  account?

Usually the government can’t freeze a  bank  account. Since you are not actually purchasing anything from them directly, they have no way to store your money. Plus, the government as an entity does not have or own a  bank . They do use one. That’s how they pay their bills. But technically speaking, they do not have a way to store your money.

The only time the government can freeze an account, is for security reason. For instance, if they suspect terrorists are using money in an account, the government can go in and freeze the account, so the money can’t be used.

LIST:

 Bank  of  America  – 1-800-432-1000

JP Morgan – 1-800-935-9935

Wachovia  Bank  – 1-866-647-7365

Wells Fargo  Bank  – 1-866-647-7365

Citibank – 1-800-950-5114

Washington Mutual  Bank  – 1-800-788-7000

SunTrust  Bank  – 1-800-786-8787

U.S.  Bank  – 1-800-872-2657

Regions  Bank  – 1-800-734-4667

Branch  Banking  and Trust Company – 1-800-226-5228

National City  Bank  – 1-888-622-4932

HSBC  Bank  USA – 1-800-975-4722

World Savings  Bank , FSB – 1-866-647-7365

Countrywide  Bank  – 1-800-841-9986

PNC  Bank  – 1-888-PNC-BANK

KeyBank – 1-800-539-2968

ING  Bank  – 1-800-ING-DIRECT

Merrill Lynch  Bank  USA – 212-449-1000

Sovereign  Bank  – 1-877-768-2265

Comerica  Bank  – 1-800-292-1300

Source by Abhinav Kumar Goel

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Frozen Bank Accounts