Legal Question in Banking Law in Illinois

Freezing Your Checking Account

I have a checking account and mortgage on commercial property with a State bank. Can they legally freeze my checking account for failure to pay my monthly loan payment? If so, please sight ILCS that allows this. Further, if they freeze my checking account in lieu of a loan payment, then shoudldn't I be credited for the payment? How can they claim my payment is past due ( not even 30 days yet ) when they have frozen my checking account? It would be a little hard to pay the payment. Nothing like a catch 22 situation.


Asked on 12/01/05, 2:04 am

1 Answer from Attorneys
Zedrick Braden III Ainsworth & Associates PC

Re: Freezing Your Checking Account

Hello. I doubt if it is proper for this bank

to place a freeze on your checking account. A

foreclosure action is usually what happens. In

my opinion the bank has acted improperly, unless

there is specific language in your mortgage

agreement which gives the bank the right to take

this action. You should contact the Illinois

Department of Financial Institution and make a

complaint. There are a few other steps that you

should take to further protect yourself. I will

be happy to answer any additional questions that

you may have.

Read more
Answered on 12/03/05, 2:06 am


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