Neobanks are sleek, modern, and fast—until they aren’t.
When your funds get frozen, you’re suddenly in a bureaucratic black hole with canned replies like, “Our compliance team is reviewing your case.”
But here’s the part most people don’t know: lawyers use a systematic process to force releases—and it works. If your legitimate funds are locked up, follow these steps to push back and win.
🛡️ This article is proudly sponsored by Remoove, the team behind 5+ years of successfully helping digital entrepreneurs recover blocked funds and break through compliance walls. Their experience informs every step below.
Step 1: Demand a Written Basis 📜
Most users just wait and hope.
Don’t. Instead, demand a clear explanation in writing for the freeze. Under PSD2 (EU) and FCA regulations (UK), banks are obligated to provide a reason unless they’re under AML (anti-money laundering) restrictions.
📌 Why it matters: When you force the issue in writing, compliance teams are required to justify the freeze. Many can’t—and that’s where the cracks begin to show.
Step 2: Use Statutory Deadlines 📅
Wait 7 days after requesting a written reason. Then…
Quote the legal time limits for fund holds.
In many regions, if there’s no AML suspicion, non-suspicious funds must be released within 30–45 days. Check the bank’s own T&Cs and local banking code—then quote the exact clause.
📌 Why it matters: This shifts the dynamic. You’re no longer a passive user—you’re now a legal deadline they have to answer to.
Step 3: Escalate Above Support ⚖️
Wait another 3–5 days after quoting deadlines. If you get canned responses, escalate.
Bypass chat support and file directly with:
UK: Financial Ombudsman
EU: EBA (European Banking Authority) or ECB (European Central Bank)
Your Country: Banking Ombudsman or Consumer Protection Body
📌 Why it matters: Regulator involvement triggers faster internal action and adds pressure to resolve cases.
Step 4: Push for a Partial Release
After Day 14, if funds are still frozen:
Request a segregation of disputed funds.
Ask them to release the undisputed portion immediately to prevent “unnecessary financial harm” (an actual legal term).
📌 Why it matters: Even if a few transactions are flagged, there’s no legal basis to hold everything. Partial releases are a common legal compromise.
Step 5: Apply Controlled Public Pressure
If private channels stall after 3 weeks, consider going public.
Craft a factual, concise, and legally framed social post. Tag the neobank’s official accounts. Mention your regulatory complaint.
📌 Pro tip: Don’t rant—document. This approach is far more effective when it supports, not replaces, your legal complaint.
Step 6: Set Up Redundant Payout Rails
Before any of this happens (or after you recover your funds), future-proof yourself.
Set up a second neo-bank, traditional bank account, or Merchant of Record.
📌 Why it matters: Legal action takes time. A backup payout rail turns a freeze from a full-blown crisis into a manageable delay.
🎯 Want the Lawyer’s Cheat Sheet?
👉 Click here to get the full cheat sheet now.
It includes every step, legal templates, and direct compliance contacts—curated with insights from Remoove’s 5+ years of frontline experience helping digital entrepreneurs unblock their funds.
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