AUGUSTA (AP) – Some consumers who use debit cards are finding that their balances have been squeezed by merchants who freeze a larger-than-expected amount while awaiting payment. Some are finding out when their checks bounce.

The pattern seems to have increased since fuel prices began their post-Hurricane Katrina surge, prompting complaints to lawmakers.

A $35 gas charge could freeze $100 or more in a personal account for several days, said state Rep. Walter Ash. Some might not notice but it can be a major financial headache for others with a smaller balance who live paycheck to paycheck.

“It’s a matter that ought to be cleaned up,” said Ash, D-Belfast.

Ash wants to submit legislation barring merchants and debit card companies from placing holds for more than the amount actually spent. If legislative leaders allow Ash’s bill to be admitted, lawmakers will take it up during the 2006 session.

Complaints aren’t limited to Maine. Some consumers in Vermont have complained their accounts were frozen when they purchased gas, said Tom Candon, the state’s deputy commissioner of banking.

“We’re finding that some customers who use debit cards at the pump are having some of their funds frozen in their checking account until the actual amount goes through for that purchase,” he said. “We’re looking into it.”

Candon said he is discussing the issue with the House Commerce Committee.

Holds, also known as freezing or blocking, are nothing new. Businesses such as hotels, restaurants and car rental agencies, which swipe debit cards before a final total is added up, have long blocked off larger figures to make sure the amount to be debited is covered, said Colette Mooney, deputy superintendent of Maine’s Bureau of Financial Institutions.

In the case of gas, a hold is often placed from the moment a debit card is swiped at the pump, and the hold remains in place even after the transaction is completed. Typically, there’s no hold if the customer goes inside to pay, officials said.

Mooney said consumer interest has grown sharply since gasoline prices have shot upward, resulting in much larger bills for fill-ups and larger debit account holds. Mooney knows of no illegality in placing the holds, but said consumers can learn a valuable lesson.

“It’s important for people to ask the business if it’s going to block, how much is the block, and how is the block determined,” said Mooney.

Neither the Maine Association of Community Banks nor Maine Credit Union League has seen an upsurge of complaints about holds or demands that overcharges be erased. But officials for both organizations agree that consumers should be aware of holds and keep on top of current account balances.

That’s especially important with debit accounts, in which purchases are dedtuced instantly.