{"id":824413,"date":"2019-12-20T10:56:29","date_gmt":"2019-12-20T15:56:29","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=824413"},"modified":"2026-02-11T08:23:33","modified_gmt":"2026-02-11T13:23:33","slug":"frozen-bank-account","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/banking\/frozen-bank-account","title":{"rendered":"Help! My bank account is frozen"},"content":{"rendered":"

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\u2019re overseas, it could put you in a tough situation. In any case, you\u2019ll need to contact your bank or creditor in order to get your account unlocked.<\/p>

3 Reasons your account may be frozen<\/h3>
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Suspected fraud<\/strong><\/h4>

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.<\/p>

Outstanding debt to creditors<\/strong><\/h4>

A creditor can seek a court order to freeze your account and automatically withdraw 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.<\/p>

Outstanding debt to the government<\/strong><\/h4>

The Canada Revenue Agency (CRA) has the right to freeze your account and withdraw funds, without a court order, if you owe them money and haven\u2019t arranged payment. Again, they wouldn\u2019t freeze your account without first communicating with you about the issue.<\/p>

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\n 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.\n <\/div>\n <\/div>\n<\/div>\n

Bank account freeze rules Canada<\/h3>

Who can freeze a bank account in Canada?<\/h4>

Financial institution<\/strong><\/p>

Financial institutions typically include a clause in their account agreements stating they can temporarily freeze your account if they suspect fraudulent activity or unauthorized transactions.<\/p>

They may also freeze your account if you owe them money, such as an overdraft or unpaid loan.<\/p>

Canada Revenue Agency<\/strong><\/p>

Section 224 of the Income Tax Act states that the CRA can require a financial institution to freeze a customer\u2019s account and transfer funds to the government to settle unpaid tax debts without obtaining a court order.<\/p>

However, the CRA will give you a verbal warning by phone, then send a written letter before taking action. And, the CRA can only collect on a debt for either 6 or 10 years, depending on the type of debt.<\/p>

Creditors<\/strong><\/p>

Creditors can freeze your account by obtaining a court judgement and then serving a Notice of Garnishment to the financial institution.<\/p>

Law enforcement<\/strong><\/p>

According to the Criminal Code of Canada, law enforcement agencies can also freeze bank accounts involved in criminal investigations.<\/p>

How to unfreeze a frozen bank account in Canada<\/h3>

Whether you\u2019re on home soil or overseas, you\u2019ll 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\u2019re overseas, try using Wi-Fi calling or a landline to avoid international roaming charges from your cell phone company.<\/p>