You head to an ATM to withdraw $100 from your bank account. But you’re unable to get any of your money. You later find out your bank account has been frozen. In many cases, a bank blocks your access to the account because a debt collector has obtained a court order against you.
The court order requires the bank to freeze your account so the debt collectors can recover money that’ll help cover your past-due debt. If you find yourself in a situation like this, or you’re wondering “Can a collector get into my bank account?” or you want to keep it from ever happening, read on so you can minimize or avoid the financial fallout of a frozen bank account.
Step 1: Your first call should be to the debt collector.
If you discover your bank account has been frozen, your first move should be to contact the debt collector who obtained the court order. You might be able to work out an agreement that’ll allow you to keep your account open and access your funds.
Once you come to an agreement with the debt collector, ask for documentation confirming the terms of your arrangement. This could be in the form of a letter or email from the collector. Once you have this documentation, reach out to your bank and provide them with a copy. The bank can then release the freeze on your account.
Step 2: If you can’t come to an agreement with the debt collector, your next step is to file a claim in court.
Filing a claim in court is sometimes referred to as “objecting to the debt.” When you file a claim, you’re essentially telling the court that you don’t believe you owe the debt—or that the amount being sought by the debt collector is incorrect. You’ll need to appear in court so you can present your case and provide evidence to support your claim.
If the court agrees with you, it’ll issue an order stating that the debt collector can’t freeze or get bank garnishments on your bank account.
Step 3: There are some situations where you might not be able to file a claim in court.
In some cases, you might not be able to file a claim in court because the statute of limitations has expired on the debt. The statute of limitations is the amount of time a creditor or collector has to sue you for a past-due debt. Once the statute of limitations expires, the creditor or debt collector can no longer take legal action against you to collect the debt.
You can learn more about this at Freedom Debt Relief.com if you’re struggling to repay your debts, there are some resources that can help.
There are some steps you can take to prevent a debt collector from freezing your bank account.
If you’re worried about a debt collector freezing your bank account, there are some steps you can take to prevent it from happening. First, try to stay on top of your payments and avoid falling behind on your debts. That’ll make it less likely that a creditor will sue you—and that a debt collector will be able to obtain a court order against you.
You can also request what’s called a “cease and desist” letter from the debt collector. This is a formal request for the debt collectors to stop contacting you about the debt. Once the collector receives your cease and desist letter, it can only contact you in limited circumstances—such as to let you know that it’s going to file a lawsuit against you or that it’s going to take some other legal action.
So, to answer your question “Can a debt collector get into my bank account?”, yes. If a collector freezes your bank account, it can be a stressful and frustrating experience. But there are some steps you can take to fight back—and some resources that can help if you’re struggling with debt.
Also read about Benefits of Using a Credit Card