The blocking of a bank account is a situation that can create great uncertainty and financial problems for the account holder. But is it legal for a bank to do so without prior notice?
In this article we analyse the main circumstances that allow a financial institution to block a bank account, as well as the rights of the holder and the possible legal actions that can be taken in these cases. This topic is closely related to the services specialised in banking law, an area in which our law firm in Barcelona, BUFET GÓMEZ FERRÉ, has more than 25 years of experience offering solutions.
What does blocking a bank account mean?
The blocking of a bank account implies the suspension of all products and services associated with it, including the impossibility to make transfers, withdraw money or make payments. The account remains inoperative until the reasons that led to its blocking are resolved.
According to the Bank of Spain, these measures must be justified and notified as soon as possible to avoid unnecessary damage to the customer. However, there are situations in which the bank can act immediately and without prior notice.
Reasons for blocking a bank account
We will explain why a bank account can be blocked without notice. There are several reasons why a bank can block a bank account. Some of the most common are in the following cases:
Blocking of bank account due to seizure
On the other hand, the blocking of a bank account by attachment is a legal measure designed to ensure the fulfilment of an outstanding debt. This can occur when a financial institution receives a court order requiring it to freeze the funds necessary to cover the amount owed. During the garnishment, the account holder cannot dispose of the blocked funds.
This type of seizure can affect both individuals and company directors, especially in cases where the latter are found to have breached their legal responsibilities or have negligently managed the company’s assets. Moreover, the seizure is not only limited to personal accounts; it can also reach accounts associated with companies in which the director has some degree of involvement.
Rights of the blocked account holder
Although the bank has the power to block accounts under certain circumstances, you should also be aware that there are rights that protect the account holder, backed by current Spanish legislation:
- Notification: The bank is obliged to inform the customer about the blocking, except in cases related to money laundering or terrorist financing. In such cases, the blocking can be executed immediately and without prior notice, but the customer is still entitled to know the legal basis for the action taken.
- Access to information: The holder has the right to know the reasons for the blocking and the steps necessary to remedy it. In cases of judicial seizures, the data subject should also be informed about the court order supporting the blocking.
- Claim: If the holder considers that the blocking of his/her account is unjustified or has been carried out without due legal guarantees, he/she can file a claim with the Customer Service Department of the financial institution. If you do not receive a favourable response within the estimated time, you can take the complaint to the Bank of Spain’s Complaints Service.
- Protection of the unattachable balance: In cases of garnishment freezing, the holder is entitled to respect the minimum unattachable balance established by law, which allows individuals to keep a minimum amount of money to meet their basic needs.
- Legal action: If the administrative channels do not solve the problem, the holder can resort to legal action.
Legal procedures in case of improper blocking
If you believe that the blocking of your bank account has been improper or has been carried out without following legal procedures, there are several options for you to consider:
- 1. Internal complaint to the financial institution
File a formal complaint with the financial institution’s Customer Ombudsman Department. This department is obliged to evaluate your case and issue a response within a maximum of 2 months. It is important to detail the facts, include relevant evidence and request a specific solution, such as the release of funds or compensation for damages caused.
- 2. Complaint to the Bank of Spain
If you do not receive a response or if the response is not satisfactory, you can escalate the case to the Bank of Spain’s Complaints Service. This body will analyse whether the bank has acted in accordance with current regulations and, although its resolutions are not binding, they can have a significant influence on the financial institution’s position.
- 3. Legal action
In cases of serious or continuing blockage, especially if you have suffered considerable financial damage, you can take legal action. Among the legal measures you can apply for are:
- The release of frozen funds.
- Compensation for damages, such as inability to pay bills, damage to your credit or damage to your reputation.
- A court order determining the illegality of the blockade, which could prevent similar situations in the future.
Before initiating legal proceedings, in many cases it is possible to reach an agreement with the bank, however, each case of improper blocking has its own particularities that must be carefully analysed. In any case, it is advisable to seek the advice of lawyers specialised in banking and financial law, who can mediate and present legal arguments that demonstrate the lack of justification for the blocking, guide you through each step of the process and give you the necessary support to resolve the situation in which you find yourself.
Relationship between the blocking of accounts and the claiming of claims against administrators
The blocking of bank accounts may also be related to the liability of company directors, especially in situations of outstanding debts or mismanagement of corporate assets.
When a company encounters financial problems or defaults on its payment obligations, creditors have the right to apply for the attachment of bank accounts linked to the company. In some cases, if directors are found to have acted negligently, fraudulently or in breach of their legal duties, attachment may also extend to their personal accounts. This usually arises from a claim against directors, where creditors seek to recover the money owed through the assets of the company’s directors.
In addition, the Capital Companies Act states that directors must always act in the best interests of the company and with due diligence. Failure to comply with these obligations may trigger legal action against them, including the blocking of bank accounts by judicial seizure.
Frequently Asked Questions
Yes, it is possible. To do so, it must be proven that the attachment is not justified or that the debt has already been settled. A specialised lawyer can help you with this process.
No. Only in specific situations, such as the prevention of money laundering or terrorist financing, blocking can be done without prior notice. In other cases, the bank must give advance notice.
If you do not receive a response within 2 months, you can escalate your complaint to the Banco de España’s Complaints Service or consider legal action.
Free Lawyer Consultation – Lawyers specialising in bank accounts and garnishments
Consult a lawyer free of charge: at BUFET GÓMEZ FERRÉ we have a team of procedural lawyers who are experts in Claiming claims against administrators, as well as Claiming unpaid debts and Banking Law, among others.
If you are facing problems related to blocked bank accounts, garnishments or administrative liabilities, we invite you to contact us, offering you a free initial consultation where we will analyse your case in detail to guide you on the best legal options available.
We are distinguished by our more than 25 years in the claims sector and by working as lawyers by results, which means that our fees are linked to the success of the claim and we adapt ourselves completely to the economic proposals of each client.
If you are looking for an experienced and committed law firm in Barcelona, do not hesitate to count on us to help you resolve your financial conflict.