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For how long is it legal for a bank to place lien on a person’s account without court or police order?
It’s frustrating when you can’t spend your own money, and banks usually set holds by policy. It is possible to get a hold removed, but you’ll have to plead your case. W First, find out why the hold exists. Also, your funds could be frozen because you used your debit card at a business that uses a large pre-authorisation hold. Ask to have it cleared. If a merchant placed a hold on your account through your debit card, contact the merchant and ask them to release the funds. These holds should fall off after a few days. In some cases, you won’t be able to do anything about a hold. Again, your bank needs to follow the Central Bank regulations and justify any holds in your account, so they can’t keep you from your money forever. If things go on for too long, contact the Consumer Protection Department and file a complaint.
The legality of it is not known, if there’s any, as each bank and each transaction can be very unique.
Banks generally do not hold the funds unnecessarily as it will affect their service reputation in the long term, unless the circumstances warrant such. Holding any amount in account for any legal reason depends upon any external reason. If a bank sustains a hold on your account for more than two days without a valid reason or an order, you should visit the bank immediately to query the act.