Why has my account been blocked? Your questions answered (2024)
Picture this, you have what shopping you need at the checkout, you are in a hurry to pay and get home but your account has been blocked.Fuming, you leave the shopping where…
Picture this, you have what shopping you need at the checkout, you are in a hurry to pay and get home but your account has been blocked.Fuming, you leave the shopping where it is and stomp out of the shop. You know you have money in there, you know it hasn’t been stolen so why? Why? Why?
Everyone knows that banks will freeze an account when reported stolen or if you have attempted fraud. For the average person who has neither of the above it can be frustrating at best and really problematic at worst.
What it means if your account is blocked
When your account is blocked it means you can’t make any purchases using your debit card. It also means any direct debits or standing orders will not be processed. Access to your funds will also be blocked therefore, you can’t withdraw cash out at ATM or Post Office and you can’t make any payment transfers.
The main reasons accounts get blocked:
To protect you from unauthorised access
Suspected fraud
Lack of use
Suspicious transactions
Disputes with your bank
Reported lost or stolen
What most account holders don’t know is that many digital banks don’t set the rules around blocking accounts. It is the ‘issuing’ bank that sets the rules around account freezing and processing transactions. These companies provide the technology to enable your account provider to exist, they have a relationship with Mastercard or Visa and they set the regulate the account features and restrictions.
Why is it happening more often?
In 2002 the Proceeds of Crime Act came into place and banks are under a legal obligation to ensure they monitor customer accounts for suspicious activity. As a consequence, this is now a much more common reason that banks freeze accounts, even if it for a payment of £40.
Fraudsters have dramatically increased fraud in the UK in recent years. They stole £754 million from customer accounts in 2021, a 30% rise from 2020. Furthermore, transfer scams amounted to £355 million, an increase of 17%. The data reported shows a fraud scam is happening to 24 people an hour in the UK, amounting to £2 million per day.
What to do it if is blocked?
Contact your bank and find out. It can be a quick and easy process.
Log in to your online banking and review your transactions for any unfamiliar payments or deposits.
Open a new bank account
How do I avoid being blocked in the future?
It is not possible to predict when your bank will freeze your account but to minimise the chances of your account being block we suggest you:
Contact your bank if you are expecting an odd payment into your account or going out of your account. This will forewarn the Fraud team and they may be less likely to freeze the account if it is an expected payment.
Understand the limits to your account and don’t use it outside of those limits
Suits Me Accounts
Although Suits Me also need to abide by the regulatory requirements and UK law, there is a commitment to ensuring we have no or minimal ‘false positives’. This means we do everything we can using advanced technology to make sure your account isn’t blocked when you have not committed any fraudulent activity. If your account does become temporarily blocked, we have the fastest turn-around time to re-opening. In fact most customers do not even notice their account has been blocked.
Suits Me offer personal accounts providing banking-like features to manage your money with a free deliver contactless debit. Rewards come as standard and there are no minimum deposits.
Join thousands of people who wanted to an account to suit them.
Open Your Account Today
Summary
In summary, having your account frozen can be really disruptive and cost you money if direct debits bounce. The banks are legally bound through the POCA (Proceeds of Crime Act) to monitor every transaction on your account. Notably, most of the monitoring is conducted through technology with rules pre-set by the issuing bank. This monitoring is in place to protect you from fraud and accounts that have been frozen, if there has been no suspicious activity will be unfrozen quickly.
Account freezes are normally the result of a court order, and in some cases, they may be done by the bank itself. This usually occurs when the account holder has unpaid debts to creditors or the government, or when there is suspicious activity detected through the account.
A bank account freeze means you can't take or transfer money out of the account. Bank accounts are typically frozen for suspected illegal activity, a creditor seeking payment, or by government request. A frozen account may also be a sign that you've been a victim of identity theft.
In the case of money laundering, unless given permission by the police, a bank will close your account – often without notice – and is not allowed to tell you why.
There is no set amount of time that an account may be frozen. Freezes are usually lifted once the account holder satisfies the conditions that led to the freeze. When a bank account is frozen, it may be because of money owed to another individual or business.
The duration of a bank account freeze depends on the circ*mstances. Simple misunderstandings may be resolved in 7-10 days, while more complex scenarios could take 30 days or longer. In cases where the freeze is due to tax obligations or legal disputes, there's no set time limit.
How long can a bank freeze your account for suspicious activity? It is most likely to be resolved within a couple of weeks. However, if the NCA are investigating you may not hear anything for up to 42 days. After the expiry of that period the Bank must normally release the bank account unless there is a court order.
Spam or phishing: If a Gmail account is sending a lot of spam or phishing emails, Google may restrict it to protect its users. Abuse of terms of service: If a Gmail account is violating Google's terms of service, such as by sending threatening or harassing emails, Google may restrict it.
Here are some steps you can take to determine if you've been blocked on Google: Attempt to sign in to your Google account. If you're unable to sign in and receive an error message, it's possible that your account has been blocked. Try accessing Google services like Gmail, Google Drive, or Google Search.
Here's what you should do: Contact Your Bank Immediately: This is the most crucial step. Call the bank's customer service number, preferably the one listed on the back of your debit card or on their official website. Speak to a representative and explain that your account is frozen.
A bank can freeze an account due to suspicious activity for as long as it is necessary to investigate the activity and determine whether it was legitimate or not. The specific amount of time that a bank will take to investigate will depend on the complexity of the case and the availability of information.
1. Understand the reason for the restriction: Contact your bank to inquire about the specific reason for the restriction on your account. It could be due to various factors, such as suspicious activity, regulatory compliance, or a dispute.
Your account may be frozen. Debits will be blocked and deposits won't make it in. You'll get your money back (usually). You may receive a check in the mail for the remaining balance, unless the bank suspects terrorism or other illegal activities.
There are different reasons why an email account can be blocked, such as entering a wrong password several times, sending spam messages, or being accessed without your consent. Depending on the reason, there are different ways to unblock your account.
Introduction: My name is Aron Pacocha, I am a happy, tasty, innocent, proud, talented, courageous, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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