Bank That Allows People To Lock Or Freeze Their Accounts At Will?

Intugumbo | Jun 21, 2023 | 41 posts since 2019

Are there banks or credit unions, that anyone can join, that allow their customers to lock or freeze the bank accounts at will? I know they're standard features were customers can lock there debit cards. That is part of what I'm looking for.

I want to be able to go to the online banking system and make its so the account is locked or frozen. All attempts at withdrawals of any type will be refuse by the bank or credit union. This includes bill pay, ACH, ATM, online payments, and debit card payments. However, deposits may still be allowed.

This "lock or freeze" continues indefinably until the account holder undoes it.

Is there a banks or credit union that offers this service?

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Answers

CDmanFL | Jun 21, 2023 | 286 posts since 2019

I believe that Navy lets you put your accounts in credits only status meaning no withdrawals are permitted without your verbal permission after a thorough security check. BofA also offers this. And Fidelity has a money lockdown setting on their webpage. It would be nice if this was more standard in the banking industry.

txFish1 | Jun 21, 2023 | 476 posts since 2023

@CDman The Fidelity money lockdown is very nice as it still lets in deposits into the cash management account and allows for bill pay to work but nothing can be transferred or withdrawn out of any or all of the accounts you select

CDmanFL | Jun 21, 2023 | 286 posts since 2019

Exactly. Excellent, smart and protective feature. All FIs should offer something similar.

Intugumbo | Jun 22, 2023 | 41 posts since 2019

I assume your are talking about Navy Federal Credit Union? I have search their website. The only thing I can find you can lock is the debit card attached to a checking but not the checking account its self.

I will look into Fidelity.

CDmanFL | Jun 22, 2023 | 286 posts since 2019

Yes Navy Federal. I think only a representative can do it for you, unlike Fidelity where you can do it yourself on their webpage. Navy may only do it if you’re a victim of identity theft or have a fraud alert on your credit file. I had it with them a while back for a short period of time while I was sorting out an identity theft matter but I subsequently removed it. Perhaps I’ll add it back now that I’m thinking about it but I’m not sure what their current rules are. It’s worth a phone call to inquire.

choice1 | Jun 22, 2023 | 370 posts since 2023

NFCU says it won’t do a debit block. Could challenge an automatic check debit within 60 days and they would reverse the transaction with corresponding bank (remember this bank destroyed the original check). They also think (no explanation on how) the original merchant or …that initiated the transaction was to retain a copy of the check…ergo challenge and/or change checking account number. What says you all?

Jim378 | Jun 21, 2023 | 28 posts since 2022

The IRS offers that service LOL!!!!!!All kidding aside. That's a good question

Ltssharon | Jun 26, 2023 | 471 posts since 2020

Oh my what a circus it was getting that 6 digit code to lock things down. I don't think I could ever repeat it. And then at the very end the system said that you have to get a new 6 digit number each year. Yet, it didn't give directions for getting a new 6 digit number each year. Anyway, supposedly for the rest of this year if you have the 6 digit number, no one can get into your money that the IRS is holding on to (for example quarterly payments, paycheck holdings for the irs, etc. If I were a thief, I would just try every 6 digit number, but maybe it kicks you out after a couple of tries.

choice1 | Jun 21, 2023 | 370 posts since 2023

Good Q
Briefly I do not like FIs being able to “cash” paper checks through ACH! Very difficult to prove forgery or…. Last year I saw a post on another site where a debt collection individual/rep (big issue in that industry) was saying, in effect, one can’t stop their current FI from permitting an ACH even by opening a new checking account there…”your FI will merely move funds from new accounts “ and one needs to start anew with a new FI

I have a Q pending with a FI that I have a non-used checking account and plan to change where the bulk of my checks are drawn upon.

If one has experienced some fraud incident there may be hope but given financial incentives to reduce costs/checks who knows who will prevail.

Trying to prove the negative is difficult, ie I did not authorize this ACH transaction

What says others?

Ltssharon | Jun 26, 2023 | 471 posts since 2020

Well, this is not an answer to your exact question, but I have found that Fidelity easily lets you lock and unlock your whole account yourself when you log in. If I remember correctly, Schwab and Vanguard had similar options. However, though I can't remember specifics, they are more cumbersome in that you have to call in to a representative to change it to unlock. And remember Vanguard isn't open on weekends. And I recall with each of them that sometimes you are on hold fo quite a while, and then transferred around, etc.

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