Can Bills Be Paid With A Frozen Account?

Frozen Bank Account

If you find your bank account has been frozen by your bank or credit union, you are in for some very cold and bleak times.  Without a bank checking account you cannot use your ATM card, write checks to your bill holders, or even withdraw cash in person.  A frozen bank account can lead to you losing a lot more money than you might now owe.  Why is this?  This is because while your assets may be frozen, the clock on your existing debt is moving right along on schedule.  If and when you begin missing payments on your loans, credit card bills, department store bills, etc. you will quickly start accumulating more debt.  More debt in accumulated interest, and worse: more money owed due to late fees and overdraft charges.  A frozen bank account can spell financial disaster for the consumer.  While the money may be there in your checking account, when the bank freezes it, you will not be able to use it to pay any of the bills you owe- period.

Getting To The Bottom Of A Frozen Account

When you have been notified by your bank or credit union that an account of yours has been frozen, you need to find out why.  More importantly, you must get the contact information for the company or agency that initiated the asset freeze.  Your bank will not let you access this frozen money once it has been done under any circumstances.  Your bank can legally do this, and it can be done for up to twice the amount of what you owe the creditor who initiated the account seizure.  Contact your bank immediately once you are made aware of a frozen account.  Ask them why it was frozen, for how much money, and get the information you need to contact the company that requested it.

Putting The Heat On A Frozen Account

The good news is that the block over your account is made of ice and not cement: it can be thawed out and removed.  To do this you need to start a dialogue with the lender who initiated the seizure.  Find out how much they say you owe them, and if you can, pay them immediately.  If this is not an option, start negotiating for a reduced amount or payment plan.  Stipulate than in either of these two options that the account seizure be removed as soon as possible so you can access your cash and pay your bills.

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