Having your account frozen due to fraud allegations can be incredibly frustrating and could have all kinds of negative effects. Fortunately, it is possible to challenge an Account Freezing Order also known as “AFO”. At ABV Solicitors, we can provide legal advice and representation to help restore access to your assets. This post offers more information on Account Freezing Orders and how to challenge them.
An Account Freezing Order (also known as an ‘ACO’, an ‘asset freezing order’ or a ‘freezing injunction’) is a court order that prevents an individual or business from accessing their bank account. No withdrawals or payments can be made while an Account Freezing Order is in place.
Law enforcement agencies or courts typically issue an Account Freezing Order following suspicions of fraudulent activity. Freezing funds prevents assets from being moved while investigations can be carried out and may allow stolen funds to be returned (known as a Forfeiture Order).
An Account Freezing Order can often have many negative effects. Some of the potential negative consequences of an Account Freezing Order include:
Inability to make payments/withdrawals
You will not be able to withdraw money, move funds or pay other people while an Account Freezing Order is in place. If it’s a personal account, this could mean that you are not able to pay bills or make purchases. If it’s a business account, you won’t be able to pay suppliers or employees from this account.
Inability to collect payments
No payments can go into your account while an Account Freezing Order is in place. This could mean that you are unable to take in any earnings. If you run a business, your entire business operations may have to come to a halt, as you won’t be able to accept payments.
Credit score damage
An Account Freezing Order is likely to negatively affect your creditworthiness – both by resulting in arrears and by flagging up your account as potentially fraudulent. This could mean that you are unable to apply for new loans, credit cards or payment plans.
Reputational damage
The disruptions caused by Account Freezing Orders can cause huge amounts of reputational damage – affecting relationships with creditors, suppliers, clients or employees. Having to open up publicly about the cause may further result in loss of trust.
Loss of assets
If criminal activity can be proved after freezing your accounts, the funds in your account may be seized as part of a Forfeiture Order. This is so that the money can be returned to the rightful owners. As a result, you could lose funds in your account leading to additional financial struggles.
All of this can create a lot of emotional distress. This can particularly be the case if you are facing allegations of fraud that are completely false.
Some Account Freezing Orders are temporary and only last a few days, but others can last up to two years. It is essential that you take action quickly to minimize the negative repercussions.
Reclaiming funds after an Account Freezing Order has been issued can be difficult, however it is possible. An order will usually stay in place until investigations have been completed. However, there may be specific circumstances in which you can access or redeem your funds.
For example, you may be able to petition a court to provide limited access for necessary expenses. This could include essential living expenses or important business operational costs such as paying employees.
Alternatively, you may be able to prove that any fraud allegations are unfounded or that the order is otherwise unfair. This could enable the order to be lifted, providing you with full access to your account again. Forfeiture Orders can also be argued and prevented.
Whatever action you decide to take, it is recommended that you hire legal representatives to support you. This could greatly increase your chances of challenging a freezing order and greatly increase the chance of restoring access to your funds.
Specialist fraud solicitors will be able to review the order and determine its validity. Such solicitors will have a clear understanding as to what your rights are, and they will therefore know exactly how to challenge the order to achieve the best outcome. This could include:
Overall, legal representatives can help fight your corner for you by understanding the complexities of the legal system and helping you collect the right evidence to argue your case. They can greatly reduce the stress of the situation by working on your behalf and answering any questions you may have. Legal fees may not have to be paid until after the Account Freezing Order has been lifted if you do not have any other means of payment.
Why choose ABV Solicitors?
At ABV Solicitors, we specialise in defending individuals and businesses against fraud allegations. We are experts in fraud law – including an array of different types of fraud from tax fraud to investment fraud- and have taken on many large and complex cases across the UK. Whatever fraud allegations you are facing, we can help provide support.
We have lots of experience with Account Freezing Orders and have successfully challenged many of them, helping clients to reclaim their funds. We will work quickly and thoroughly in order to increase the chance of success and minimise any disruptions the order may cause.
To start working with us, get in touch today by phoning us or emailing us. You can also contact us via our online form. We will get back to you as soon as possible so that action can be taken quickly to unfreeze your account.
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