Frozen Account: Know How To Unfreeze It?

What is frozen account?
One of the reasons, if you are not able to withdraw money from a bank account, could be the freezing of the account. A bank account that is frozen is unable to process withdrawals. You are unable to make payments, withdraw money, or move money out of your account when it is frozen. Additionally, planned payments will not be honoured. Even if it cannot make or receive money, a frozen bank account is nonetheless able to accept deposits.
A bank will only freeze an account for a cause that it deems suitable. Usually, it's to avert more regulatory infractions, persistent bank policy infractions, or cost-cutting initiatives. Either the financial institution or a court order can lead to the freezing. To resolve any issue with the account it is necessary to figure out if the account is closed, suspended, or frozen.
For the frozen account, once the problem is fixed, the account can and will be unfrozen, at which point it will become accessible again. Concerning suspended account, the amount of time that can be spent on an account can be restricted or suspended. The account holder may be subject to a limit on the number of transactions they can make or lose their ability to withdraw money. It is impossible to open an account that has been closed back up. Before shutting an account, a bank needs permission and sufficient justification for the closure of the account. It will not collaborate or work with the account holder when it is closed.

What could be the reasons for an account being frozen?
Banks keep a close eye on accounts to look for unusual or fraudulent activities.Your account will be frozen and investigated until the problem is fixed if it raises red flags.
These are the potential causes of the account freezing.
1. You owe money.
If you owe money, credit card firms have the authority to ask the bank to freeze your account. Likewise, unpaid taxes may cause your account to be frozen. However, before your account is frozen and you are notified, creditors must obtain permission from the court by obtaining a documented judgment for debt against you.
2. The account has been inactive for a long time.
An account that has never been used or has no transaction history may seem strange and cause concerns. In order to maintain security in this situation, the bank will take preventative action, such as freezing the account.
3. Your account has been connected to some questionable conduct.
To stop money laundering, fraud, and other infractions, freezing is used when certain cash amounts or behavioural patterns raise red flags. Sometimes, to conduct an investigation, law enforcement demands that the bank freeze an account.
4. To safeguard an account, a freeze is imposed. The bank may believe that someone else has accessed your account or that the account has been hacked if it observes spending on your account that does not correspond with your typical spending habits. To keep you safe in this situation, the account will be temporarily frozen. To protect your funds in the event that your credit or debit card is lost or stolen, you can also temporarily freeze your own account.

What are the steps to get your account unfreezed?
1. Find the Cause.
   Almost invariably, the bank notifies the user when the account is frozen. After you understand the logic behind it, you can determine what has to be done to unfreeze it. The process for unfreezing a bank account is as follows.
   

   Cause	Solution
   Debt	Settle down the debt with creditors or file bankruptcy.
   Inactivity	Make deposits or get in touch with the bank
   Suspicious Activities	Demand the bank for the verification of the same

2. Account Frozen due to Debt
   The amount owed from the frozen account may be withdrawn by the credit card company. If this is the case, then immediately consult a legal professional. If there isn't enough money in the account to cover the debt, the creditor may levy the remaining amount.
   In this situation, if the debt is not too large, you might choose to talk to the creditor about resolving it. This will finally unfreeze your bank account and vacate the judgment against you. If it becomes impossible for you to settle the debt, you have the option to file for bankruptcy. Bankruptcy will stop collection efforts and stop wage garnishment, but it won't unfreeze your account.
   It won't be possible for you to take money out. In addition, filing for bankruptcy can have a long-term negative effect on your credit score and loan eligibility. Because of this, you should only do this as a last resort. A legal expert should be consulted if your bank unexpectedly blocks your account because of debt in order to safeguard your rights to due process.
3. Account Frozen due to Inactivity
   Try attempting to make a withdrawal or deposit. Some banks could immediately deactivate your account if you finish a transaction within a predetermined amount of time.
   As an alternative, get in touch with your bank directly to find out what has to be done to unfreeze it. In order to verify your identity and account ownership, you could be asked to submit identification and verification documents.
4. Account Frozen due to Suspicious Activities
   You can reach your bank, and they should be able to resolve the matter quite rapidly. Usually, suspicious activity—such as unreported foreign transactions, greater transaction amounts, stolen cards, etc.—is what triggers the freeze.
   Your bank might request that you respond to security questions, submit verification codes, carry out digital 2-factor authentication, or present identification in order to lift the freeze. You can visit your bank in person or complete this online.
   Your account might occasionally be frozen if there is a suspicion that it involves the more serious crime of fraud. You won't get your account cancelled or suspended if it has merely been flagged until it is demonstrated to be fake. On the other hand, fraud-based freezing can need legal challenges before any decisions are rendered.
   A bank may immediately freeze your account if they suspect fraud or money laundering, as opposed to frothing it because of debt. Contact a legal expert to know your rights when your account is frozen.

For what duration can my account be frozen by the bank?
A bank account freeze's duration is contingent upon the specific conditions. While more complicated situations can take 30 days or more to resolve, simple misunderstandings could be cleared up in 7-10 days. There is no time limit in situations when the freezing is the result of tax liabilities or legal challenges.
If you ignore the freeze, it will stay in place until the issue is handled, and in certain situations, the account might even be closed. Unfreezing an account is not guaranteed and is up to the bank's judgement.
What are the steps that can prevent my account from getting frozen?

An account that has been frozen may be quite stressful and inconvenient. Indeed, there are things you can do to stop it.

Here are some pointers:
• Consult a legal expert regularly and update the expert on any unusual activity
• Attend to calls that debt collectors make.
• Make on-time credit bill payments. If you are unable to, speak with your creditor to arrange a payment schedule.
• For personal and business accounts, use different banks.
• Examine your bank statements closely to be sure there hasn't been any fraudulent activity.
• If you are making a big purchase or want to use the account overseas, think about alerting your bank in advance.