Your bank account can be frozen for a number of reasons, but the most common are suspected fraud and unpaid debt. And if it happens while you’re overseas, it could put you in a tough situation. In any case, you’ll need to contact your bank or creditor in order to get your account unlocked.
3 Reasons your account may be frozen
The main reasons why bank accounts can be frozen are unpaid debt and suspected fraud. The steps taken to freeze your account and the process to get it unfrozen will vary based on the reason it was frozen. The 3 main causes of your getting frozen are:
Suspected fraud. This occurs when your bank sees a string of strange activity in your account, like suspicious log in attempts, unprecedented big purchases or transactions occurring in different locations at once. Some banks will notify you if they have to freeze your account, either by a phone call or even text. However, you may find out before they contact you if your debit card gets unexpectedly declined.
Outstanding debt to creditors. A creditor can seek a court order to freeze your account and automatically withdrawal its funds in order to pay an outstanding debt. Even your bank could freeze your account to collect an unpaid debt, like credit card debt, from your account. A creditor would only do that, however, after multiple attempts to communicate with you to settle the outstanding debt.
Outstanding debt to the government. The Canada Revenue Agency (CRA) has the right to freeze your account and withdrawal funds, without a court order, if you owe them money and haven’t arranged payment. Again, they wouldn’t freeze your account without first communicating with you about the issue.
Keep in mind that no matter what the cause is, if your bank account is frozen, no money can leave your account. So any automatic withdrawals from your account will likely bounce, and you could be charged NSF fees.
How to unfreeze a frozen bank account in Canada
Whether you’re on home soil or overseas, you’ll need to contact your bank as soon as possible if you need to unfreeze or unlock your bank account. Most banks will require you to call in to verify your identity, as opposed to going online to fix the problem. If you’re overseas, try using Wi-Fi calling or a landline to avoid international roaming charges from your cell phone company.
Call CIBC’s domestic line at 1-800-465-2422 (Canada or US) or the international line at 1-902-420-2422. Follow the prompts to speak with a customer service agent and verify your identity to unlock your account. For TTY, call .
If you’re in the Canada, call 1-800-769-2511. Otherwise, use +800-769-2511 and replace the “+” with the international access code according to the country you’re in. If you’re deaf or hard of hearing, call 1-800-661-1275 for TTY.
If your Neo Financial account is frozen, you’ll have to call +1 (867) 322-4427 to talk to a Neo Financial representative.
Call 1-800-4SCOTIA (1-800-472-6842) if you’re in Canada or call collect (416) 701-7200 if you’re outside of Canada and the US. Speak with a customer service representative to verify your identity and unlock your account. If you’re deaf or hard of hearing, call 1-800-645-0288 for TTY.
Dial 1-844-837-9228, and if you’re outside of North America call (514) 881-3845. You’ll have to verify your identity to unlock your account. If you’re deaf or hard of hearing, phone 1-877 CALL BMO (225-5266)
For domestic inquiries, dial 1-866-222-3456 and follow the prompts to speak to an operator. As of December 2019, the fastest way to talk to an agent during the identification process is press “2” followed by “0”. When traveling outside of North America, use the appropriate international access code number in front of the 1-866-222-3456 number.
You can also text TD with a message that is 136 characters or less, at TDHELP (834357).
If you’re deaf or hard of hearing, dial 1-800-361-1180 to reach support by TTY.
Call Tangerine from within Canada at 1-888-826-4374 or 416-756-2424. To call from anywhere outside Canada, dial 416-758-3139. If you are deaf or hard of hearing, Tangerine accepts Third-Party Relay calls through their other phone number (1-888-826-4374).
Check the back of your credit or debit card to see if there’s a number listed that you can call.
If you’re outside Canada and an international number is available, call that one. If it’s not specified, call whatever customer service number is printed on the back of the card.
If there’s no number listed, look for contact information on your bank’s website. If you can’t find a number or you’re unable to make calls, you can try contacting your bank through email or a secure message center from within the bank’s app.
How to unlock your account when creditors freeze it
The same principle applies here – communicate with your creditors. By contacting them, you’re helping to prove that you intend to pay your debt. You can contact your bank to find out which company has frozen your account. Once you’ve worked out a payment schedule with you’re creditor, it’ll likely unfreeze your account.
In the meantime, you could consider opening up another bank account with a different bank and arranging to have your paycheck deposited there. That way you’ll still have access to your money, even while you sort out your finances with your lender.
Why would my bank suspect fraud?
Banks need to be more vigilant than ever to protect their customers against fraud. As part of this protection, banks have systems in place to monitor customer accounts for any suspicious activity.
Online account log in issues
One common reason a bank may freeze your account is because of errors when you tried to log in to your online banking or mobile app profile. If you’ve used the wrong password too many times, your account may be locked for a few minutes.
In that case, simply wait until you can attempt to log in again, and retry your password. If you continuously enter the wrong password, your account might be locked indefinitely, which would require you to call your bank to get it unlocked.
Your account may also be locked if you enter any incorrect information while attempting to reset your password. Again, you’ll likely need to call your bank directly to sort out any issues.
Transactions in Canada
Cashing bad cheques, making unusual purchases or large deposits and having inaccurate personal information can lead to your account being flagged. Banks also look out for small purchases that are immediately followed by large ones, as thieves often use small purchases to test an account before buying what they want.
Banks also sometimes track fraud by location. For example, let’s say you use a credit card in one city and 1 minute later a debit transaction from your account occurs in a city many miles away. The bank may assume that one of those transactions was unauthorized since you can’t be in two places at once. In that case, your account may be frozen.
Transactions overseas
When your credit or debit card is used to make a purchase in a different country without warning, it can be a sign that it was stolen. To protect your account, your bank may freeze it until you can verify your identity and confirm the card is in your possession.
How can I prevent my account from being frozen due to fraud?
Banks are always on the lookout for suspicious activity, so you should take precautions to avoid having your account frozen by accident.
Protect yourself from fraud at home
Avoid making unusually large deposits or purchases, make sure all cheques you cash are legitimate and keep your personal information up to date.
Additionally, try not to stray too far from your usual spending habits; if you usually spend $10-$20 per day on your debit card, suddenly buying a series of luxury items or shopping in expensive stores could raise suspicion.
Protect yourself from while traveling
To keep your account from being flagged for potential fraud while traveling, let your bank know where and when you plan to travel before you leave. You can do this by calling your bank, visiting a branch or using the online platform or mobile app. However, bank security algorithms are constantly improving to recognize travel transactions, so some banks no longer require you to call in advance. Always be safe and check with your bank to find out what information they require from you.
You can also provide details of the best way for the bank to get in touch with you while overseas. You can log back into Internet banking at any time, even if you’re already overseas, to make changes to your travel plans.
How to prevent your account from being frozen by creditors
Creditors, including the government, just want to know they can get their money back eventually. So if you know you can’t make a payment, then call them immediately to let them know and possibly arrange an alternative payment schedule. They often make provisions for people struggling to make debt repayments, and by communicating, you’re showing them you plan on repaying the debt. Usually, a creditor won’t take steps like freezing your account, if you’re in constant communication with them about your financial situation.
In some cases, you might have to consider filing a consumer proposal or declaring bankruptcy, if you know you won’t be able to repay a debt.
Tips for handling money while traveling
Whether you’re going on an upstate road trip or taking a vacation overseas, here’s how you can easily and affordably handle your money while traveling:
Consider a travel money card. A prepaid travel card can help you save money and avoid bringing your debit card. Look for a card that allows you to take advantage of the best exchange rate and also avoid any unnecessary fees.
Use cash and cards. Take a combination of cash and cards with you so you can pay for all your purchases. There are some situations overseas where cash will be the only payment option, while cards add extra flexibility and security.
Don’t exchange currency at the airport. Airport foreign exchange companies tend to offer poor exchange rates. You’ll get a better deal if you purchase your foreign currency in advance or even when you arrive at your destination.
Check card expiration dates. You don’t want to get halfway around the world only to discover that your credit or debit card is about to expire.
Watch out for fees. Find out what your bank charges for foreign transaction and ATM fees. If you travel often, consider getting a travel-friendly credit card.
Bottom line
If your account is frozen for any reason, you should immediately call your bank to speak to a customer service representative. In most cases, you’ll be able to verify your identity and get your card unlocked almost instantly. And if you’re not happy with the customer service you’re getting, compare other bank accounts so that you don’t have to deal with this next time.
Frequently asked questions about frozen bank accounts in Canada
Following some basic security features can help prevent fraud. Hiding your pin as you enter it into a machine and keeping track of your cards during transactions are two good places to start. Banks may have additional features to make it easier to detect fraud and avoid your account being frozen. Contact your bank's customer service team to find out what fraud prevention measures are available to you.
If your account was frozen because of suspected fraud, you'll likely be able to use your card almost immediately after verifying your identity. If your account was frozen for another reason, it'll depend on why your account was frozen and whether the issue is resolved. Contact your bank to learn more.
In Canada, there's no legal limit to the amount of time a bank account can be frozen. A bank will typically only unfreeze an account once the issue that caused the freeze has been resolved. For example, if your account was frozen due to unpaid debt, the account will remain frozen until either the debt is paid or an agreement is reached with the creditor.
In some cases, you may need to wait a while before your card is active. Call your bank back and let them know that your card isn't working to find out if you need to take any additional steps — and ask them directly how long it will take for your card to start working again.
Chelsey Hurst is an associate editor at Finder. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature.
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Keep in mind that no matter what the cause is, if your bank account is frozen, no money can leave your account. So any automatic withdrawals from your account will likely bounce, and you could be charged NSF fees.
