What should you do if you lose access to your bank account?

Losing access to your bank account can be extremely stressful, especially when it contains all your savings or when you need to make urgent payments. In Calgary, as in other Canadian cities, there are several reasons why your account may be blocked, ranging from suspicious activity to debt obligations. Understanding what happened to your account and knowing the steps to take to quickly resolve the issue can significantly reduce the time it takes to regain access to your funds and minimize financial inconvenience.

Main reasons for losing access to a bank account

Canadian banking institutions have the legal right to freeze or restrict access to accounts for several main reasons. According to the Bank Act of Canada, three main categories of organizations can initiate a bank account freeze: the banks themselves, general creditors, and the Canada Revenue Agency (CRA). Each of these entities has its own specific grounds and procedures for freezing funds.

Banks can freeze your account immediately and without a court order if they detect suspicious activity that may indicate fraud or money laundering. This may include unusually large transactions, numerous transfers in a short period of time, or activity that does not match the customer's usual spending patterns. In addition, banks can exercise their right of offset if you have outstanding debts with the same bank — they can freeze your account and use the funds to repay the debt.

General creditors can only initiate an account freeze after obtaining a court order against you for unpaid debts. This means that they had to file a lawsuit to collect the debt and obtain a corresponding court order. The Canada Revenue Agency has the broadest powers and can freeze accounts without a court order for unpaid taxes, fines, or other obligations to the federal budget.

First steps when you discover a block

When you discover that you cannot access your bank account — whether because you cannot withdraw cash from an ATM, online transactions are being declined, or your debit card has been returned — the first and most important step is to contact your bank immediately. Do not panic or try to perform multiple transactions, as this may only worsen the situation and raise additional suspicions of fraudulent activity.

Call your bank's 24-hour customer service line. For major Canadian banks, these numbers are:

• TD Canada Trust: 1-866-222-3456

• RBC Royal Bank: 1-800-769-2511

• BMO: 1-877-225-5266

• Scotiabank: 1-800-472-6842

• CIBC: 1-800-465-2422 During the conversation, be prepared to provide complete identification information: account number, social insurance number, date of birth, residential address, and answer security questions.

The bank representative should explain the reason for the block and provide information on the steps necessary to restore access. It is important to write down all the information you receive in detail, including the case number (if any), the name of the representative you spoke with, and precise instructions on how to proceed. Ask for written confirmation of the reasons for the block and the unblocking procedure to be sent to your email or postal address.

Actions to take if fraud is suspected

If your account is blocked due to suspected fraudulent activity, it usually means that the banking system has detected unusual transactions or spending patterns that do not match your usual financial profile. In such cases, the bank is acting to protect your funds, and the unblocking process is usually relatively quick if you can confirm the legitimacy of your actions.

Be prepared to provide detailed explanations for all recent transactions, especially those that may have raised suspicion. These could include large cash withdrawals, purchases in unusual locations, online purchases from foreign online stores, or numerous small transactions over a short period of time. Collect all receipts, invoices, and documents that prove the legitimacy of these transactions.

If you have been a victim of fraud and someone has used your account without your permission, immediately notify your bank and file a report with the Calgary Police Service at 403-266-1234. Obtain a police report number, as this will be necessary for further reimbursement and investigation procedures. Under Canadian law, you are entitled to full reimbursement for unauthorized transactions if you acted responsibly and reported the incident immediately.

Resolving debt problems

If your account is blocked due to outstanding debts, the situation is more complex and may take longer to resolve. In the case of a bank block due to your own debts, you should immediately contact your bank's credit collection or debt service department. Be prepared to discuss options for repaying the debt, including the possibility of installment payments or debt restructuring. If the block was initiated by third-party creditors based on a court order, you need to contact the creditor or their legal representatives directly. Possible solutions include paying off the debt in full, entering into an installment agreement, or appealing the court order if you believe it is unjust.

If the Canada Revenue Agency has blocked your account, contact the CRA immediately at 1-800-959-8281. Be prepared to discuss your tax debt and possible options for repayment. The CRA is often willing to consider payment plans, especially if you can demonstrate a willingness to cooperate and an ability to make regular payments.

Emergency financial assistance during a freeze

While your primary bank account is frozen, you may find yourself in a difficult financial situation, especially if that account held all of your savings. Calgary and the province of Alberta offer several emergency financial assistance programs for situations like this.

Alberta Supports provides Emergency Needs Allowance, a one-time financial assistance to cover basic needs in emergency situations. Call 1-877-644-9992 to find out if you are eligible for this assistance. The program can cover the cost of food, temporary housing, transportation, medication, and medical supplies while you resolve your bank account issues.

Distress Centre Calgary administers the Basic Needs Fund, an emergency support program for individuals and families in financial crisis. Call 2-1-1 to find out if you are eligible for a one-time grant to address your immediate needs. In 2024, $136,091 was distributed to 165 families and individuals through this program.

The Calgary Catholic Immigration Society (CCIS) and Immigrant Services Calgary (ISC) provide specialized support to immigrants and newcomers, including emergency financial assistance and advice on banking procedures. Immigrant Services Calgary coordinates the Rapid Response Fund program to provide one-time payments to those who have lost access to funds due to technical or legal issues.

Alternative Financial Solutions

When dealing with issues with your primary bank account, consider opening a temporary account at another bank or credit union. First Calgary Financial and other credit unions often have more flexible requirements and can open a basic account more quickly to cover your immediate needs.

If you have a credit card that is not blocked, you can use a cash advance to get cash from ATMs. However, keep in mind that cash advances usually have high interest rates and fees, so only use this option to cover essential expenses and repay the amount owed as soon as possible.

Consider obtaining a short-term loan from friends or relatives, if possible. This may be a more affordable alternative to expensive payday loans or cash advances. Be sure to put such a loan in writing, even if it is a loan from loved ones, to avoid misunderstandings in the future.

Legal assistance and consumer protection

If you believe that your bank has acted improperly or if you disagree with the decision to block your account, you have several options to protect your rights. Calgary Legal Guidance provides free legal advice to low-income individuals. Call 403-234-9266 to schedule a consultation regarding banking disputes and consumer protection.

The Financial Consumer Agency of Canada (FCAC) protects the rights of consumers of financial services. If your bank is a federally regulated institution (which applies to all major Canadian banks), you can file a complaint with the FCAC through their website or by calling 1-866-461-3222. The FCAC will investigate your complaint and may help resolve your dispute with the bank.

Pro Bono Law Alberta coordinates free legal assistance from volunteer lawyers. Call 1-800-661-1192 to find out if you are eligible for free advice on banking disputes, especially if the case requires legal action.

Preventive measures and future security

To avoid similar situations in the future, consider diversifying your banking relationships. Keep accounts at different banks so that if one account is frozen, you still have access to your funds through another. This is especially important if you have significant savings or if your income is deposited into only one account.

Regularly review your bank statements and online banking for early detection of suspicious transactions. Set up automatic alerts for all transactions above a certain amount so that you are immediately notified of unusual activity on your accounts.

Keep detailed records of all your financial transactions, especially large or unusual purchases. Keep receipts, invoices, and documents that can confirm the legitimacy of your financial transactions. This will greatly simplify the process of unblocking your account if the bank suspects fraudulent activity.

Keep all your contact information with the bank up to date, including your home address, phone numbers, and email address. Banks are required to notify customers of account problems, but they can only do so using the contact information on file.

Additional Resources and Support Services

Calgary has numerous organizations that can provide additional support during financial crises. The Credit Counselling Society at Suite 115 – 1925 18 Avenue NE provides free debt management and financial planning advice. Phone: 403-263-9905.

2-1-1 Alberta is a 24-hour, toll-free service that can refer you to appropriate resources and support services. Call 2-1-1 or text INFO to 211. The service is available in over 170 languages and can help you find financial support, assistance with paying bills, or legal advice.

If you are a student at the University of Calgary, Enrolment Services provides Emergency Financial Assistance for students who are facing unexpected financial hardship. In addition, students can apply to the SU Hardship Fund for grants to cover emergency expenses.

Losing access to your bank account is a serious problem, but with the right approach and knowledge of available resources, it can be resolved relatively quickly. The key factors for success are contacting the bank immediately to find out the reasons for the block, gathering the necessary documents, using emergency financial assistance programs to cover current needs, and, if necessary, seeking legal assistance. Keep in mind that most bank blocks are temporary and can be lifted after providing appropriate explanations or fulfilling the necessary conditions.