When A Bank Freezes Your Account: Legal Rights Ohio Consumers May Not Know They Have
Nothing is worse than realizing your bank account has been frozen. Be it an attempt to make bill payments, buy food, or even receive a wage payment, your frozen bank account will stop you dead in your tracks. Although banks do have the legal ability to freeze your account depending on the situation, consumers in Ohio also have rights. Knowing the reasons for freezing bank accounts and your rights as an account holder will certainly help resolve any issues faster.
Why do banks freeze accounts?
Freezing a bank account can be done under various grounds, but these reasons mostly pertain to legal issues. One of the most frequent causes of account freezes is the suspicion of any form of fraud. Whenever a bank suspects fraudulent activities, including unusually large or strange transactions, the bank can place the account on hold pending further investigation.
The other possible cause of a bank account freeze is through wage garnishment or a court order. If a creditor wins a lawsuit against a consumer, the creditor can opt to garnish or freeze the consumer’s bank account until the debt is paid. Likewise, banks can freeze accounts to collect any unpaid federal taxes or child support payments.
Other possible grounds include ownership disputes and suspicious activities.
Your rights under Ohio law
While banks wield significant power, such power cannot be exercised without firm limits. Ohio residents have several rights regarding their bank accounts after they’ve been frozen.
Firstly, you have the right to be notified. In most cases, especially in garnishment cases, you will be notified of the freezing of your bank account and provided with details about the creditor and the amount owed. Such notification is crucial since it will allow you to defend yourself against the garnishment.
Secondly, there are funds that cannot be garnished either by Ohio or federal law. For instance, Social Security income, disability income, and pension income are exempted. As such, if your bank accounts hold such funds, you have the right to have those funds freed from the freeze. However, timing is crucial in these matters.
What should I do if my account is frozen?
Should your account be frozen, the very first thing you should do is reach out to your bank right away. Find out the reason behind the account freeze and see whether it is temporary or if it will last as long as the lawsuit against you lasts.
Secondly, you should make sure that you have read through all the notices. Should the freeze result from a garnishment order, you should file certain documents in court to prove that some of your assets are exempted or should not be garnished. It might also be helpful to provide your income sources at this point.
Thirdly, it might be beneficial to hire a lawyer with knowledge of consumer law.
Talk to a Columbus, OH, Consumer Law Attorney Today
Kohl & Cook Law Firm, LLC, represents the interests of Columbus residents who have had their accounts frozen. Call our Columbus consumer lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
