C24 Bank freezes accounts and does not pay out credit balances – Law firm files lawsuit

We are increasingly receiving reports from C24 Bank customers about significant problems managing their accounts. Our law firm, Dr. Greger & Collegen, which specialises in banking and capital markets law, is currently seeing a growing number of cases where affected individuals are reporting account freezes, immediate account closures, and specifically, the refusal of withdrawals.

According to the circumstances described to us, accounts are often blocked without prior notice. As a result, those affected no longer have access to their credit balances. At the same time, accounts are cancelled without the existing credit balances being paid out promptly. In some cases, there are considerable delays or complete payment blocks.

For those affected, this often has serious consequences. Ongoing payment obligations cannot be met, which can lead to reminders, contractual breaches or even existential difficulties.

From a legal perspective, the situation is clear: even if the business relationship is terminated, the bank remains obliged to pay out the existing credit balance to the customer without delay. Withholding funds is only permitted under strict legal conditions, for example in the event of concrete suspicions in the context of money laundering audits. Even in such cases, however, the bank is obliged to act proportionately and to justify the measure both in terms of time and objectively.

A blanket or prolonged retention of customer funds is regularly unlawful and can give rise to claims for payout and, where applicable, damages.

Against this backdrop, our law firm has already filed a lawsuit against C24 Bank to enforce the disbursement of withheld funds through the courts. In our assessment, these are not merely isolated incidents, but rather a recurring problem.

Affected parties should have their claims reviewed promptly. In many cases, there are good prospects of success in enforcing payment out of court or through legal proceedings.

Dr. Greger & Collegen specialises in banking law and represents clients nationwide in dealings with credit institutions. If your account with C24 Bank has also been blocked or funds are not being paid out, we are available to provide a legal assessment.