Unfreezing Your Bank Account: Everything You Need To Know

We at Idaho Title Loans, Inc. know that having to go through the process of unfreezing a bank account can be both frustrating and nerve-wracking. The situation can become even more devastating if you’re not able to get access to your hard-earned money while simultaneously having to deal with an emergency, like a high medical bill or urgent home repairs.

Below, we will share all the information you need to know on steps to release frozen funds, including a few helpful tips on preventing account freezes in the future. We will also explain how our emergency cash loans, including title loans, payday loans, and installment loans, can help when your account may be frozen due to inactivity or failure to pay off debts.

How To Handle A Frozen Bank Account: Find Out What You’re Dealing With

Before you can go about unfreezing a bank account in Idaho, it’s essential to understand why your bank account has been frozen. When an account is frozen, it means that you are not able to move or spend your money. The reason for your frozen funds will affect how to handle a frozen bank account.

A business or a financial institution can place a hold on the account for one of the following reasons:

• The bank suspects fraud: If the financial institution detects some strange activity, it can freeze the account in an attempt to save the owner’s savings. A sudden large withdrawal or a transfer to an overseas bank can make your financial institution suspect a scam or unauthorized access.

• The account owner fails to repay debt: Credit card companies and other lenders can ask the bank to freeze your account if you have failed to keep up with the repayment schedule. The account might also be frozen due to tax debt or if you haven’t paid significant bank fees. Before putting a hold on your account, the financial institution typically gives you a notice.

• The account has been frozen due to inactivity: Bank accounts can be frozen if there has been no transaction history for a relatively long period of time. If you don’t make a deposit or a withdrawal for over a year, your account might even be closed (the exact timeframe can differ from one bank to the other).

The financial institution will also freeze an account if the owner dies and there is no beneficiary. Having your bank account frozen is a huge inconvenience because there are unavoidable negative consequences you can suffer as a result.

The Downsides Of Having A Frozen Bank Account

On top of not having access to your money for daily expenses, there are other negatives associated with having your bank account frozen. Without access to your account, automated payments cannot be taken out. This can lead to payments bouncing, leading to late fees.

Failing to make payments because you cannot access your account can also lead to your credit score dropping. Missed payments during your bank account freeze will remain on your credit history and establish a negative payment record.

Thankfully, there are avenues for unfreezing your bank account in Idaho to regain access to your funds.

3 Steps To Release Frozen Funds

Once you realize your bank account has been frozen, it’s essential to move fast to unfreeze your account. Every bank has a different process for how to unfreeze your bank account, so don’t make assumptions based on a friend’s experience or what you read online. Start the process immediately to avoid the downsides of a frozen bank account and regain access to your money.

The following are three steps to release frozen funds:

1. Contact the bank: The first thing you should do in such a situation is contact your financial institution to determine the root cause of the problem. Be prepared to confirm your identity and answer a few security questions. They will explain their procedure for unfreezing your bank account in Idaho, which may differ from other banks.
2. Stop outgoing payments: If the process is likely to take a few days or weeks, make sure to stop all automated payments. Contact the service provider and update your payment method to avoid missing payments that can lower your credit score. If your employer pays you via direct deposit, change the payment information ASAP, as in the worst-case scenario, you might lose access to your paychecks.
3. Provide proof of an error: If your account has been frozen due to suspected fraud or illegal activity, you must provide proof to regain your account. This can include showing that your card was stolen and you didn’t make the charge that led to your account getting frozen.

Those whose accounts may get frozen due to inactivity should make a small deposit to prevent this. If your account has been frozen due to failing to pay your debts, your account will likely remain frozen until you clear your debt, but you could try negotiating with the creditor. The lender might agree to settle for a smaller amount, especially if you are ready to pay a lump sum.

Preventing Account Freezes In The Future

The best way to go about preventing account freezes in the future is to reach out to your bank. Notify them whenever you’re planning on making an abnormally big purchase or right before going abroad. Also, monitor your account activity on a daily basis for suspicious transactions.

Reach out to them immediately if a charge appears on the account that you did not do to resolve it before your account gets frozen.

You should also focus on budgeting to help afford debt repayment. Rather than playing debt repayment by ear and affording what you can, budget for repayment and reduce spending to ensure you make your payments. Avoiding missing payments can help you prevent bank account freezes.

Idaho Garnishment Laws: Everything You Need To Know

You should know about Idaho garnishment laws if you’re in danger of having your bank account frozen because of missing debt payments. Creditors can save a portion of a debtor’s wages if they fail to make payments on time over the course of several months.

If you have found yourself in debt, you should remember that it typically takes creditors between 3 and 6 months without payments before they decide to take further legal action. In case the creditor successfully gets a court order and a writ of execution, they will have the right to garnish your paycheck.

When it comes to Idaho garnishment laws, the maximum amount that can be withheld is capped at 25% of the employee’s “disposable earnings.” However, bear in mind that the percentage might vary depending on the type of debt and how much you owe. To avoid wage garnishment or bank account freezes, you could borrow money to afford debt repayment with Idaho Title Loans, Inc.

How Idaho Emergency Loans Can Help Prevent Account Freezes

Financial emergencies can arise when you least expect them. Significant emergencies, such as losing your job or needing to pay medical debt for major injuries, can affect your ability to make debt payments. If you worry that your account may get frozen because of missing debt payments, Idaho Title Loans, Inc. can help with our emergency ash loans.

You can borrow money in Idaho fast with our easy-approval emergency loans. Borrowers can start the process online and get approved in person in less than 30 minutes at one of our Idaho store locations.

We offer three types of loans that can help borrowers in different financial situations:

• Title loans: Borrowers who have fully paid off their cars can borrow up to $15,000 by using their lien-free car title as collateral. Your title loan amount will depend on your vehicle’s value, as newer, less damaged models are worth more. You must have fully paid off your vehicle to get approved for this type of loan.
• Payday loans: Also known as payday advances, they let you borrow up to $500 from a future paycheck. You can get approved for payday loans if you can prove you have consistent income. Borrowers can repay the loan with their next paycheck.
• Installment loans: These are unsecured loans that let borrowers receive up to $1,500 as long as they agree to repay the loan in fixed installment payments. It will take a few months to repay installment loans.

Each of these loans has a similar process that lets you get approved the same day you apply. If you need emergency cash, contact us for assistance today. Submit your information online, discuss the loan process over the phone, and get your required items verified in person.

Borrow Emergency Loans In Idaho – Receive Funds Within One Business Day!

Unfreezing your bank account can be a long process, so avoid having to worry about that by making debt payments with the help of Idaho Title Loans, Inc. We offer title loans, installment loans, and payday loans to borrowers who need cash today for financial emergencies. You can get approved in less than 30 minutes, regardless of your credit score, thanks to our simple, efficient approval process.

Ready to get cash today for financial emergencies? Submit your information through our online contact form or call us to speak to a loan representative about which loan is right for you.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.