Some may have experienced having their account blocked due to a lost or stolen debit card. However, in certain cases the bank is authorized to block the account without the consent of the account holder.
What are the consequences of an account being blocked?
An account can be blocked by the bank for a variety of reasons, and as a result the account holder is denied access to their account. The money is still in the account, but is frozen. As a result, the holder cannot withdraw funds, make transactions, or add funds. Blocking the account can mean that debts can no longer be paid off and the rent is not paid, as standing orders are also stopped – this can have significant consequences for the account holder. So when does the bank have the right to block the account?
Repeatedly entering incorrect PIN
To protect the account, the bank may block the online banking or checking account if the PIN has been entered incorrectly several times, writes “Schuldnerberatung.de”. In this case, the bank decides to block the account for security reasons, since incorrectly entering the PIN may indicate a crime in which a stranger is trying to gain access to the account.
Unauthorized overdraft or non-payment of installments
Unauthorized and too frequent or excessive overdrafting of the account can result in the bank blocking the account. This happens when an account holder with an overdraft exceeds the approved overdraft limit or their account goes into the red, even though this is not contractually permitted. Since an overdraft can indicate an uncertain financial situation, the bank may block the account as a precaution.
If a person has also taken out a loan from a bank and does not pay the resulting repayments, the bank is also authorized to block the account.
Major transactions, crimes and a death
The bank is also authorized to block the account if there are suspicious transactions or criminal offenses. Suspicious transactions are unusual movements in the account, such as withdrawing or transferring very large amounts.
Furthermore, the account can be blocked if the account holder is suspected of having committed a crime such as money laundering. The money in the account may therefore be frozen immediately.
The same applies in the event of a death. If the deceased had a joint account and made no arrangements for managing the account after his death, the account will initially be blocked. The heirs are then authorized to unblock the account again.
The account blocking in the course of the account seizure
Anyone who does not fulfill their obligations and does not pay bills or debts must expect an enforcement order to seize their account in the course of compulsory enforcement. For this purpose, the account is blocked via a seizure order, which prohibits banks from continuing to pay out money to the debtor. The account is therefore seized and the money is transferred to the creditor to pay the debt. However, an account seizure requires a court order and is therefore not so easy to enforce.
According to “JuraForum.de”, anyone who wants to protect their income from possible seizure can set up a seizure account, also known as a P-account, or have their existing account converted into a P-account. This makes particular sense if the account holder knows about the impending seizure. Since a seizure is usually preceded by reminders, the debtor already knows in advance what to expect. In the event of a seizure, the P account is protected by a basic monthly allowance of 1,133.80 euros. This money can still be used to cover living expenses.
Blocking by the tax office
The tax office can also seize the account and therefore block the account. If a taxpayer has tax debts and fails to pay them, the account will be blocked similar to the garnishment process described previously. However, in this case there is no need for a judicial enforcement order; instead, the tax office can enforce the seizure itself as an authority. The debtor receives the reminder in advance, in this case in the form of a performance notice. In addition, the tax office can charge late fees for taxes not paid or taxes paid late.
Editorial team finanzen.net