I opened a new account and deposited $1,368 – then the bank locked me out & froze my money even after I called 90 times

A SOFI bank user said he called it 90 times in a fruitless effort to unfreeze his new account.

The Californian man had deposited a $1,368 check – which cleared – but SoFi locked him out.

Getty

Getty

The man reached out to local consumer champion Chris Chmura at San Francisco-based NBC affiliate KNTV for help to unlock his money.

He explained to Chmura that he had opened a new account with SoFi, an online-only bank.

The man deposited a $1,368 check from his old bank.

But, SoFi then froze his account.

He contacted the bank 90 times over a period of six months to unfreeze his cash, but it didn’t help.

Having a bank account locked can be an upsetting situation that makes your basic financial life difficult.

Sofi

Sofi told him they had flagged his initial deposit as a risk – even though that check had cleared.

“He was at his wit’s end,” recalled Chmura.

KNTV contacted SoFi, and it responded four days later.

“Unfortunately we can’t share additional details but we appreciate you bringing this to our attention,” a spokesperson told the broadcaster.

However, the good news is that the man has finally regained access to his account.

Why do banks freeze accounts?

Bank accounts can be frozen to investigate unusual activity

A frozen bank account means you can’t organize transfers or withdrawals.

While you may be able to check your account, you won’t be able to move or spend money.

A bank may freeze your account under certain circumstances, for example:

• You’re bankrupt
• A bank suspects fraudulent activity
• Your wages are garnished (legal procedure) for a tax issue
• An account owner has died
• You owe back child support
• Someone else has a claim on your money
• You’ve racked up significant common bank fees

But, up to two months of Social Security and other government benefit payments must remain accessible to account owners even – despite any freezing action.

Steps to unfreeze your account:

• Contact your bank to find out why it’s frozen and how to regain access
• Fix the issue – for example in a suspected fraud situation, show your recent transactions to clear confusion
• Stop payments – if your bank account won’t be restored within a day or two, stop all ingoing and outgoing payments
• Get legal advice, if needed

Source: Business Insider

According to a register of complaints lodged with the Consumer Financial Protection Bureau , other SoFi users have reported similar frozen account problems.

For example, a complaint from a New York-based customer in April said “my Sofi checking account was frozen.”

“I then called the support and they were unable to assist me,” the person added.

“They had stated that they were investigating the account and that there was no timeline available.

“The only funds that I had in my account were from direct deposits from my employer.

“I am still not sure why my account was frozen as they refuse to give me answer.

“I don’t think this is legal and I have never run across this issue with any other bank.

“My account has now been frozen for two days without resolution.”

“Sofi Bank issued a freeze on my account and hasn’t lifted it after multiple attempts and communications,” complained another user.

The U.S. Sun has contacted the bank for further comment in relation to frozen bank account problems.

FRAUD

SoFi published advice – 3 Reasons Why You Have a Frozen Bank Account – just last month.

“Bank accounts can be frozen for such reasons as your financial institution suspecting fraud or illegal activity,” it says.

“Your funds can also be made inaccessible if your bank is adhering to a court order about unpaid debts you owe.

“In addition, the government can freeze your account if you have unpaid student loans or taxes.”

“Having a bank account locked can be an upsetting situation that makes your basic financial life difficult,” it also states.

“You might be left scrambling to pay bills and cover daily expenses.”

HOW TO UNFREEZE A BANK ACCOUNT

SoFi recommends those locked out of their accounts contact the bank in the first instance.

“Have a clear account of your most recent locations and transactions,” it adds.

“And be prepared to share any information and supplemental documentation that can help clear up the issue.

“If you can show that there’s no reason for the freeze, the bank will likely release the suspension and grant you full access to the account again.”