WASHINGTON - The Supreme Court has given banks the right to freeze the accounts of bankrupt borrowers who default on their loans.

Justice Antonin Scalia, writing for a unanimous court, said Citizens Bank of Maryland did not violate the Bankruptcy Code when it froze more than $3,500 David Strumpf held in accounts at the institution.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.