How to avoid bank accounts being frozen and minimise problems if they were.

RG2015

There have been several posts by people whose accounts have been frozen for no apparent reason. I am interested in compiling a list of actions that would reduce the chances of this happening and also minimise the problems if it did happen.

I have thought of a few but hopefully others will come up with many more.

• Have more than one bank account with access to emergency funds in at least one other account.
• Having more than one credit card at different providers to allow continued payments in the event of a frozen bank account.
• If possible, avoid online payments to or receipts from private accounts of people you don't know. Consider making or receiving such payments from a bank account other than your main transaction accounts.
• Regularly check all the credit agencies for any incorrect information on your file.
• Ensure that no one else, including family, has any access to your financial credentials.
• Avoid using public wi-fi for online banking
• Ensure all computer systems and apps are up to date and anti virus software is installed and scheduled for permanent scanning.

dealyboy

Hi RG ...

RG2015 said:

There have been several posts by people whose accounts have been frozen for no apparent reason. I am interested in compiling a list of actions that would reduce the chances of this happening and also minimise the problems if it did happen.

I have thought of a few but hopefully others will come up with many more.

• Have more than one bank account with access to emergency funds in at least one other account.
• Having more than one credit card at different providers to allow continued payments in the event of a frozen bank account.
• If possible, avoid online payments to or receipts from private accounts of people you don't know. Consider making or receiving such payments from a bank account other than your main transaction accounts.
• Regularly check all the credit agencies for any incorrect information on your file.
• Ensure that no one else, including family, has any access to your financial credentials.
• Avoid using public wi-fi for online banking
• Ensure all computer systems and apps are up to date and anti virus software is installed and scheduled for permanent scanning.

Good post/thread (risk mitigation)

When performing a transfer or payment do a 'tester' of £1 first, oils the wheels.

I sometimes forget this and wonder where my money's gone (Security).

flaneurs_lobster

RG2015 said:

There have been several posts by people whose accounts have been frozen for no apparent reason. I am interested in compiling a list of actions that would reduce the chances of this happening and also minimise the problems if it did happen.

I have thought of a few but hopefully others will come up with many more.

Stay away from cryptocurrency exchanges

RG2015

dealyboy said:

Hi RG ...

RG2015 said:

There have been several posts by people whose accounts have been frozen for no apparent reason. I am interested in compiling a list of actions that would reduce the chances of this happening and also minimise the problems if it did happen.

I have thought of a few but hopefully others will come up with many more.

• Have more than one bank account with access to emergency funds in at least one other account.
• Having more than one credit card at different providers to allow continued payments in the event of a frozen bank account.
• If possible, avoid online payments to or receipts from private accounts of people you don't know. Consider making or receiving such payments from a bank account other than your main transaction accounts.
• Regularly check all the credit agencies for any incorrect information on your file.
• Ensure that no one else, including family, has any access to your financial credentials.
• Avoid using public wi-fi for online banking
• Ensure all computer systems and apps are up to date and anti virus software is installed and scheduled for permanent scanning.

Good post/thread (risk mitigation)

When performing a transfer or payment do a 'tester' of £1 first, oils the wheels.

I sometimes forget this and wonder where my money's gone (Security).

Yes of course, risk management is a massive business these days but mainly for larger companies rather than individuals. 

Edit. Ironically, it is the banks' risk management policy alongside AML and KYC legislation that has exacerbated the problems for some individuals. 

born_again

RG2015 said:

There have been several posts by people whose accounts have been frozen for no apparent reason. I am interested in compiling a list of actions that would reduce the chances of this happening and also minimise the problems if it did happen.

I have thought of a few but hopefully others will come up with many more.

• Have more than one bank account with access to emergency funds in at least one other account.
• Having more than one credit card at different providers to allow continued payments in the event of a frozen bank account.
• If possible, avoid online payments to or receipts from private accounts of people you don't know. Consider making or receiving such payments from a bank account other than your main transaction accounts.
• Regularly check all the credit agencies for any incorrect information on your file.
• Ensure that no one else, including family, has any access to your financial credentials.
• Avoid using public wi-fi for online banking
• Ensure all computer systems and apps are up to date and anti virus software is installed and scheduled for permanent scanning.

Problem being we do not get the full picture. As it may be something that was triggered a while ago, & something else has just tipped it over the edge.

I will dd to list.

If banks requests information from you. Provide it. Not proving this is a reason to stop a account as it falls under Know Your Customer & no matter how long you have been with them, means they are working through accounts to keep details up to date.

Robin9

Why do big businesses not have this problem ?    They make thousands of payments and have thousands of receipts daily and some of those much have "dodgy" connections.

[Deleted User]

I am not convinced by the majority of these threads, I think in the majority of cases the OP doesn't give all the details.

born_again

Robin9 said:

Why do big businesses not have this problem ?    They make thousands of payments and have thousands of receipts daily and some of those much have "dodgy" connections.

They can & do. 
Only they do not come on public forums publicising the issue.

MattMattMattUK

Robin9 said:

Why do big businesses not have this problem ?    They make thousands of payments and have thousands of receipts daily and some of those much have "dodgy" connections.

Rolling and ongoing audits with the banks. Any suspicious transactions will be taken with the view of scale, but also reviewed every week with the bank and the business. Big businesses will have a compliance department and an audit trail which allows the banks to easily follow their AML requirements. 

MattMattMattUK

One of the biggest triggers for private individuals is transactions to or from another account associated with fraud or criminality. Someone the person has made a payment from or to ends up being part of a criminal investigation, or a payment was made fraudulently, eg. an account compromised and money transferred by criminals or fraudsters to obtain goods and/or services. Beyond that we do not really know as some of them are opaque, others are based on algorithms etc.  

AstonSmith

[Deleted User] said:

I am not convinced by the majority of these threads, I think in the majority of cases the OP doesn't give all the details.

What sort of details? If they were guilty of a crime, surely they'd already know why it happened and not post about it on a forum?

I would add to the list in the first post:

• Have a small amount of cash handy, maybe 2-3 weeks worth for food/petrol