Garnishment of Revolut Accounts – Protecting Your Rights

In recent years, digital banks have become a firm part of everyday life, and Revolut has become one of the most popular online banking platforms in Bulgaria. Many people find it convenient, fast and low-cost. But what happens when you suddenly discover that your account has been blocked or garnished?

It is an unpleasant and stressful situation, but what matters is knowing exactly what garnishment means, how it applies to Revolut and, most importantly, what you can do about it.

What Does Garnishment of a Bank Account Mean?

Garnishment is a measure by which funds in a person's account are blocked to secure the payment of a monetary obligation, for example an unpaid loan or a court judgment. It is usually imposed at the request of a creditor through a bailiff.

In Bulgaria, the process is governed by the Civil Procedure Code. Art. 450(3) provides as follows.

“The garnishment of the debtor's claim shall be deemed imposed on the third-party debtor from the day on which the garnishment notice is served on it.”

How Does It Work with a Bulgarian Bank?

With Bulgarian banks, the procedure is digital. The bailiff sends an electronic garnishment notice, signed with an electronic signature, through a dedicated platform. The bank receives it almost instantly and immediately blocks the relevant amount. This is a standard and well-established procedure.

And with Revolut?

Here things are somewhat different. Revolut is licensed in Lithuania and is not part of the Bulgarian electronic garnishment system. This means the bailiff must send the garnishment notice to Revolut through international channels, usually by post or email. A European Account Preservation Order may also be used.

The European Account Preservation Order is governed by Regulation (EU) No 655/2014 and enables creditors in the EU to freeze accounts in other Member States without first notifying the debtor. This is why many people only learn of the garnishment when they can no longer use their money.

What Is the Difference Between Garnishment at a Bulgarian Bank and at Revolut?

With Bulgarian banks, garnishment is imposed electronically through a platform created specifically for this purpose. The bailiff sends a garnishment notice through an electronic system, and the bank receives it immediately and automatically blocks the relevant amount. The customer usually also receives a notification from the bank by email, text message or a note in online banking.

With Revolut, however, the process is different, because the bank is not registered in Bulgaria and does not use the national electronic system. The garnishment notice must be sent through international channels, such as by post or email. In some cases, a European Account Preservation Order is used. Enforcement may take longer, since it depends on international document exchange and on the administrative practice of the Lithuanian bank.

In addition, unlike Bulgarian banks, Revolut often does not notify the customer in advance that the account will be blocked, especially where a European order is used. This is entirely permissible under EU law, since the aim is to prevent the funds from being withdrawn or transferred.

Finally, the legal framework differs. Bulgarian banks are governed mainly by the Civil Procedure Code and the Measures Against Money Laundering Act, whereas Revolut is subject to EU regulations and Lithuanian law.

Reasons for Blocking or Garnishment at Revolut

• Court proceedings and garnishment imposed at the request of a creditor
• Suspicion of money laundering or fraud
• Breach of the terms of use, for example using a personal account for business purposes

Art. 17 of the Measures Against Money Laundering Act provides as follows.

“Where the person is unable to comply with the customer due diligence requirements, it shall refuse to carry out the transaction or to establish a business relationship. Where a relationship has already been established, it shall terminate it.”

What Should You Do If Your Account Is Blocked or Garnished?

1. Find out why. Log into the Revolut app and check for a message. If there is none, contact their support team. Ask for information on the reason and, where possible, a copy of the garnishment notice.
2. Contact a lawyer. A lawyer will review the documents and advise you whether the garnishment was lawfully imposed, whether it can be challenged and what to do next.
3. Provide the documents requested. If the account was blocked on suspicion of money laundering, Revolut may ask for evidence such as statements, invoices and contracts. Respond promptly and clearly to avoid delays.
4. Challenge the garnishment if it is unlawful. You are entitled to file a complaint with the competent court or to seek a reduction of the garnishment if it is excessive in relation to your debt.
5. Be proactive. Do not wait. Communicate regularly with Revolut, monitor the status of your case and, if necessary, use an alternative bank account in the meantime.

What Are Your Rights?

As a consumer, you are entitled

• to know why your account has been blocked;
• to receive a copy of the garnishment;
• to file a complaint or objection;
• to seek the assistance of a lawyer;
• to be treated fairly and proportionately to the circumstances of the case.

Garnishment of an account, especially on a digital platform such as Revolut, can be stressful, but it is not irreparable. There are procedures through which you can protect yourself, and you do not have to face the process alone. Our dispute resolution and debt collection team can assist you in challenging an unlawful garnishment. If you need assistance, we at Arsenova Law Firm are here to help.