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No, banks do not have the legal right to withhold a customer's funds with an account freeze if they don't have a warrant signed by a judge. It's still "your mon
by corodra 7y ago
No, banks do not have the legal right to withhold a customer's funds with an account freeze if they don't have a warrant signed by a judge. It's still "your money" on loan to the bank. The silliness of being scared of a big-bad bank needs to end.
If a bank does this to you, you call up (in the USA) the OCC (Office of the Comptroller of the Currency). They do a check on you to make sure no law enforcement agency considers you a terrorist. Once cleared, they tell the bank to release the funds. No court needed. This literally happened to me after depositing a check for my business.
I agree, banks, especially the top 5, can be cunts. But don't go all tin foil hat about it. Don't watch 10 minute youtube cartoons about "how money really works because the lizard Illuminati actually control it". It's bad for your mental health.
- rwmurrayVT 7y agoIs there a time delay where the OCC can't in fact make them release funds? Several major banks have deposit limits of 5-days or even 30-days for funds inside of a new bank account to prevent check fraud.
- corodra 7y agoFrom what I understand, most verifications are done because the OCC regulated them to do so. Maybe an agency here and there added other stuff. But at the end, the OCC is the one who knocks if a bank fucks up on information due diligence. But 30 day is still beyond me as to where that comes from. 3 to 5 day. Sure. But 30 makes zero sense. My situation was a bit unique due to the account being frozen out of the blue.