What does a no debit status mean on an account and why would it be placed?

A "no debit" status is simply a block placed on a bank account to stop all transactions where money would go out of the account. All future ATM transactions, attempted debit card transactions, recurring payments, checks, etc. will be blocked. In other Words, money can go IN the account, but not OUT.

A no debit status could be placed for several reasons... Suspected fraud, a mistake in a payment arrangement where more money is being debited than agreed upon, etc.

Most banks require that you go in to your local branch to have the no debit status placed on your account, and also to have the status lifted.