Bank Unexpectedly Freezes $48K in Client's Account, Denies Fund Access & Identity Verification: News Update

A woman from Tennessee reports her bank unexpectedly froze substantial amounts in her account, despite her efforts to confirm her identity and validate her fund sources.

Torrie Jackson reported that she and her spouse were granted over $68,000 as back taxes by the IRS. They chose to deposit this sum into their Green Dot Bank account, as highlighted by NBC's WSMV news.

In July, Jackson initiated large withdrawals, aiming to close the account. However, Green Dot Bank halted her actions, leaving $48,000 inaccessible.

Jackson expressed her distress, emphasizing the importance of the funds for her family's needs and bills. She was puzzled when her account was flagged for ambiguous "unusual activity."

Green Dot Bank, a partner of Walmart and TurboTax, is renowned for handling tax refunds. As per the U.S. SEC, they processed approximately 13.78 million in tax refunds in the first half of 2023.

To regain access, Jackson provided her identification documents to Green Dot. Yet, her efforts were in vain as the bank didn't acknowledge her documents, leaving her funds frozen.

Despite daily communication attempts, Jackson feels helpless with the bank's repetitive responses. Green Dot, in their statement, mentioned liaising with the IRS regarding Jackson's funds and advised her to contact the IRS for updates.

Contrarily, Jackson received a conflicting response from the IRS, stating their non-involvement post the tax refund issuance.

“I’ve called the IRS. The IRS said they have no idea what they’re talking about. I was told once the IRS issues a tax refund, their hands are out of it.”

Oct 07, 2023