Sometimes, you may want to make a transaction from your bank account but it doesn’t respond properly. This can be due to various reasons. Sometimes, any simple and temporary problem may occur that will be resolved in the next moment. However, what about if your account is disabled permanently? This may leave you in a distressing situation. If you have an emergency but you’re helpless due to a frozen account. But why is my bank account locked? Exploring this query before finding the solution is a good idea.
Different reasons like suspicious activity may lead to a temporary or permanent locked bank account. To resolve the issue, tracking the original reason for this blockage is very necessary. After knowing the reason, you can proceed further to unblock your account. This article will be discussing all the facts about a blocked account. Let’s check what may lead to the blockage of your bank account.
Why is my bank account locked – What Is a Frozen Account?
A frozen account is not responding to any transaction or withdrawal activity. Your bank account frozen due to suspicious activity will still show the activities other than transactions. If something went wrong with your bank account, it will not perform the transfers, transactions, or withdrawals. However, if you deposit money into it, it will keep the money. Sometimes, you may think that my bank account is under investigation. This is also true that may also lead to freezing of the account.
Reasons Behind a Frozen Bank Account and why is my bank account locked?
Different accounts may freeze due to different reasons. If you are facing a similar issue, check out whether your account is facing any of the following issues.
1- Any Suspicious Activity
The foremost and the most common reason for a blocked account is any suspicious activity. You may know that all the accounts within any bank remain under the supervision of the parent bank. That particular bank has the authority to block your account in case of any suspicious activity.
After the 9/11 incident, banking policies became strict and any violation of the rules and regulations lead to the blockage of the account. If during the bank survey, your account is found flooded with the funds earned through illegal activities, your money may be suspended by freezing your account. Moreover, if you’re found guilty of any fraud, your account will be suspended in this case too.
2- Illegal Activities
Each bank has its terms and conditions. If one violates them, his account will be suspended. If you permanently try to cash out cheques that are below the available balance, this will be considered fraud. This may also be a reason for your blocked account.
If your account is found active in terrorist funding, it will be blocked and traced instantly. In short, any illegal activity that may be harmful to the bank or the country will lead to a frozen account.
3- Unpaid Loans
If you have a loan account or simply got a loan via your credit card in the past but didn’t pay those amounts timely, the bank has the right to block your account. However, they should take permission from the court to do so. After the permission, the bank can freeze your account along with your deposited money.
4- Unpaid Debts to the Government
In case, you’ve indulged in any government loan like a student loan or any other loan, your account will be disturbed by it. If the bank succeeds to trace you, that’s possible in most cases, it will freeze your account instantly. When you pay off the debt and taxes, your account will be restored after you applied.
5- Your Bank Account is Under Investigation
Another reason for a Frozen Bank Account may be the investigation process. Sometimes, you may be found guilty of any government affair. In this situation, your account will also be blocked until your investigation is completed. After you are found innocent, you can restore your account with the help of the customer’s service.
What You Can Do to Avoid a Frozen Bank Account?
If your account is blocked once, you can prevent this blockage in the future by keeping in mind the following tips:
- Avoid Suspicious Activities
Never use your account for any suspicious activity. Moreover, avoid trying to withdraw more money than the available balance. If you keep on repeating this activity, your account will be blocked.
- Don’t Take Part in Illegal Acts
Never dare help the terrorist with fund transfers through your accounts. This will also lead to a frozen bank account.
- Pay Off the Debts Timely
You might be confused why your bank account is locked. If you get loans on your credit card or via government support programs, pay off the debts timely. Otherwise, your account might get frozen.
- Never Use Your ATM Beyond the Limit
Never dare use your ATM out of the recommended location. If you do so, your account will be blocked.
A lot of people wonder why is my bank account locked. Sometimes, your bank account may stop responding to any proceedings, particularly withdrawals and transactions. These are symbols of a blocked account. Different reasons may lead to the blockage of your account. In such a case, you’ll have to close that account permanently. Open another one for daily use.