Bank customers often complain of inability to access their bank account balance when they check or try to transact on alternative banking channels like Mobile/Online Banking, USSD channel or via ATM. They may see their true bank balances but may not be able to access their account for transactions. This may be as a result of their account/s being frozen by the bank.
Bank account may be frozen for debit or totally frozen. When it is frozen for debit, the holder will be able to deposit money and other instrument into the account, but will not be able make withdrawal or transact on such account on all banking channels. including across the counter in the banking halls. And when an account is totally frozen, both withdrawal and deposits will not be possible on such account.
When your account is frozen, you will not be able to access the fund in it. You may however be able to view the balance and statement from alternative banking channels.
Here are some of the reasons why your bank account may be frozen
Police or court order
Banks are obliged to act as instructed when they are advised in written by the police and other law enforcement agents or are served court orders. Such instruction may or may not allow the bank to inform the customer/s involved.
A bank customer may instruct its bank to place a freeze on his/her account for lots of reasons. Some of which includes: lost of banking instrument like ATM card, cheque book and withdrawal booklet. Other reasons may include suspicion of online or mobile banking password compromise and lots more.
While a new account is being opened, the bank may place a freeze on it. This is in other to fulfill regulatory check requirements, checks like CAC search, address verification, ID verification, employment verification and lots more. Must be satisfactorily conducted before full operations is allowed of a new account. Such freeze will be removed immediately verification is completed and confirmed satisfactory.
The bank is at liberty to place a freeze (debit or total) on any account or even close such account it considered suspicious. In other not to go against regulations.
Operations on an account is expected to align with bank customers business or job function as contained in the account opening documents. Customer may have to provide evidence of genuineness of transactions on the account to the satisfaction of the bank in other to unfreeze a suspicious account.
There are a number of reasons why your account may be totally frozen because of BVN. READ Reason your account may be frozen because of BVN. The issues of BVN is regulatory and banks are obliged to comply.
All issues of BVN that result in freeze of an account must be resolved satisfactorily before the account will be unfrozen.
Dormancy of an account is another reason an account may be frozen for debit, there are regulatory conditions for account to be dormant. READ whats and hows of a dormant account.
The customer will have to provide evidence of account ownership and verifiable address if the old address has change before account is reactivated.
Overdue Loan Obligations
Another reason why a bank account may be frozen for debit is because a customer has loan repayment that is due but the current account balance will not be enough to pay the due amount.
This is particularly for TERM LOANS which are with termly repayments (monthly, quarterly, biannually and so on). Customer with overdue obligations may not be able to access the balance on his/her account unless the balance is above the amount due and he can access the difference.