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Can bank freeze current account?

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  • 26-02-2009 11:14am
    #1
    GlitterFairy
    Closed Accounts Posts: 29 ✭


    Can a bank freeze you current account because your credit card is in arrears?? Both the credit card and account is with Bank of Ireland.


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    #2
    Toots
    Administrators, Business & Finance Moderators, Society & Culture Moderators Posts: 16,919 Admin ✭✭✭✭✭Toots


    Hmmm, it depends. How long are you in arrears? Generally this wouldn't be standard procedure if you'd only missed a payment or two. If your card is at the point of going legal then it's very possible that they will actually close off your account altogether. What correspondence have you had from the bank regarding the credit card and your account? More to the point have you responded to it, or just ignored it? Your best bet is to call the credit control department and see what the story is.


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    #3
    GerardKeating
    Registered Users Posts: 7,650 ✭✭✭GerardKeating


    GlitterFairy wrote: »
    Can a bank freeze you current account because your credit card is in arrears?? Both the credit card and account is with Bank of Ireland.

    Depends on what you mean by "freeze", they cannot seize funds in the current account to pay the credit card debt.

    But they could decline to extend or renew an overdraft if the account is already over drawn.


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    #4
    GlitterFairy
    Closed Accounts Posts: 29 ✭GlitterFairy


    Thanks for the replies guys.

    Turns out I was over panicking! Money had been transfered into my account and I could see in the balance but couldn't withdraw it from atm...was really worried that it was because am two months in arrears on cc and also am over credit limit, eek!

    But, I plucked up the courage, and went into the branch yesterday avo - the current account problem was just because funds hadn't cleared through and i've now sorted out plan for repaying arrears. They were really nice and it wasn't at all scary!

    So on I go with trying to clear these damn debts :(


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    #5
    galwaydude
    Registered Users Posts: 1,390 ✭✭✭galwaydude


    Glad to hear it mate.


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    #6
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    A bank can use funds in your account to pay off arrears. Why would they let someone have cr in bank account to do there day to day while there CC is in arrears.

    Example, you ldg 1k into your account and feck off on hols. Your CC/Loan is in arrears of 1k. The bank will take the funds to clear your arrears leaving you red faced on your hols with no money.


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