Yes. A billing problem can prevent your Local Services Ads from running, and Google states that billing is managed through Google Ads. If your account has an unresolved payment issue, exceeded payment threshold, or other billing problem, your ads may stop running until the issue is resolved.
If your LSA account was suspended after a payment dispute, first check the billing and payment status in Google Ads and review the exact suspension reason in Policy Manager. Confirm that the correct payment method and Payments profile are connected to the account, then resolve any outstanding balance or verification request before submitting an appeal. Avoid creating another LSA account to bypass the suspension, because Google says related or newly created Local Services accounts may also be suspended.