Can A Debt Collector Freeze My Checking Account ?
It is quite inconvenient as well as embarrassing to purchase things using the debit cards or taking out money from ATMs just because one needs to check the balance available on their accounts. There are people who might be worried about their debts and the fact that the collection agency or the collectors might possess a hole on their accounts then they should try and gather the correct information towards this direction rather than believing in whatever is being heard by them. |
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People often ask whether their checking accounts can be frozen by the debt collectors or not. It is worth mentioning here that in case one has some unpaid debts that are owned by some collector or the collection agencies then an unexpected freeze on their bank accounts is quite possible though this account freezing is temporary and they are just meant for indicating an imminent account garnishment.
The reality check behind these facts is a process that is followed by the debt collectors; they are required to request writs of garnishments from respective courts after suing the person which is then served on their banks. Once the bank receives such a garnishment order, they are ordered to freeze the bank accounts.
As per the ‘U.S. Department of Treasury’, these bank account freezes are not supposed to prevent the concerned person from depositing their money but they do prevent them from withdrawing their funds. The banks have the rights that they can charge the person for any kind of checks or debits which remain uncleared during these freezes.
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With the increasing requirements along with the modern advancements, people have become used to luxurious lifestyle and this is the main reason behind their increasing debts as most of them do not think before spending money over their luxuries. They start realizing this thing once their debts appear going out of their control and this is the time when they begin looking out for some solutions for getting rid of their debts.