You know that locating a Bank Account is a good way to collect judgment that is owed you. With a judgment you can apply for a Writ at the court and have the Sheriff, Marshall, or a Process Server “hit” the bank.
There are websites that will charge you money for the information I am going to give you here. But I believe it should be available to everyone free. That includes the “how to it” and the “what not to do”. The “what not to do” is important so that you won’t run afoul of the law.
What I’m going to say here is not legal advice. I am not an attorney, and only attorneys can give legal advice. But I can make some observations, and share some of my experiences. If you benefit from them, that’s all the better.
Okay, there are many ways to find a bank account Some are legal, and some are illegal. For example, it is illegal to call a bank and pretend to be the ‘fiancé’ of the person who owes you money, wanting to make sure he is giving you correct information about his financial worth. Worse yet, you might pretend to be the debtor himself or herself.
This is illegal because in 1999 Congress enacted the Gramm-Leach-Bliley Act (GLB), which specifically prohibits obtaining, or even attempting to obtain, another person’s financial information by making false, fictitious or fraudulent statements to a financial institution. If you want to read it right from the GLB itself, go to http://banking.senate.gov/conf/fintl5.pdf. You will then be fully informed, though probably quite bored.
I have been told by some that the GLB was concerned with identity theft. It has even been suggested to me that those who want financial information simply to collect money owned them, are not involved in identity theft, and therefore the GLB does not apply to them. Others would say that this is creative thinking. I’m not an attorney, but to my mind it’s still too early to see how that might play out in the courts. Violation of the GLB is not something I would be involved in.
So what are the legal ways to locate bank accounts? Some I’ll share here are obvious. Some others are creative. Some others are daring. Here goes:
1) Use a check the debtor wrote to you:
Yes, this is obvious, and yes, the debtor may have closed his or her account. But it’s a good place to start. Your judgment may have resulted from a bad check. Or perhaps the debtor was a roommate, a friend (former friend), or even your employer. If you know which bank the person is with, levy on the accounts there. In almost all states, you can levy on any branch by serving as Writ on any branch in the state. California and some other states are more difficult. You have to know the exact branch where the account or accounts were opened.
Don’t: Call the bank and tell them the debtor gave you a check and you want to know if it’s good. Banks are on to this, and won’t believe you. The bank may also alert the debtor. And, it may well be against the GLB and other debt collection laws. Be careful. You don’t want the debtor to have a reason to sue you.
2) The Good Old Trash Run:
This is also called the “Dumpster Dive.” Okay, so you don’t like dumpsters or trash, but you are determined. You’ll get this debtor. It’s a two step process: Call the city and see when the debtor’s trash is picked up. Then go get it.
I know some people who have done this regularly. They will go out to the debtor’s home or apartment, bringing along trash bags filled with newpaper. The idea is not just to take the trash, but to take it and then replace it new with trash. Some ‘dumpster divers’ even take along different colored trash bags-white, black, green–so that the debtor won’t be alerted if he or she wanders out to get rid of one last beer can before bedtime.
The information found in trash cans is valuable. You may find a lot of things that will help you enforce the judgment. That should also warn you about protecting your own trash and recyclables. They don’t always go directly to landfill or recycling machines. In some areas the recyclable are sorted by convicts who are getting double credit for their time by being environmentally concerned citizens outside the recycling plant. They get to see all your tossed away papers, receipts, checks, bottles, and even those credit card offers you didn’t want. Hmmm. Be careful.
“Is it legal to dumpster dive?” you ask. Well, if I were your attorney I would advise you against doing it. Attorneys are conservative. They probably don’t know the answer, and know you don’t want to pay for them to research it. Besides, it is harder for them to get you to pay lots of money if they think you might be in jail. But besides the usual attorney’s views, I’ve been told that there is case law that says that once the trash is on the curb it is fair game. But I’m sure there is other case law to the contrary. Check with your local waste management company. Or see your attorney with check-in-hand.
3) Divorce Records;
These can be a goldmine of information. And in most cases Divorce Records are public information. The added benefits are that you may learn who did what to whom, who your debtor has been sleeping with (maybe more information than you want), how much alimony he or she gives, who got the stocks and accounts at Wells Fargo, who got the time-share in Aspen, and who got grandma’s silverware. Every divorce is a soap opera. Bring your handkerchief.
4) Check with People Who Know the Debtor
Even debtors have friends. Some even have lovers and past lovers. A past friend, past lover, or better yet, an ex-spouse is a terrific source of information about the debtor. Simply call them and say, “I wonder if you could help me.” (It’s hard to say ‘no’ when someone asks for help.) Be upfront. Say who you are. And say you need some help because the debtor owes you money. Listen carefully as the individual tells you all his or her woes with respect to the debtor. Take notes. Ask questions. Banking information. Work location. Inheritance, etc.
Be careful: The Fair Debt Collections Practices Act (a bureaucratic mouthful) limits who you can tell about the debt. In effect, you can’t tell anyone except your own attorney, the debtor, and a few other people UNLESS you are trying to effect a post-judgmen remedy. Suddenly, the wording looks pretty broad. But check with your attorney to make sure. Here’s what Title VIII, Section 805(b) of the FDCPA says:
COMMUNICATION WITH THIRD PARTIES.
Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a post-judgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.
You can read the entire document at http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm. It’s better than sleeping pills.
5) Bankruptcy Records:
A lot of debtors have filed for bankruptcy, and they don’t know the wealth of information they have left behind. Bankruptcy is a public proceeding. You have to give the court your social security number, and list all assets to include bank accounts on the Bankruptcy Petition. If you could only view their bankruptcy petition, you would have a ton of information. Good news! Bankruptcy petitions are online! Go to http://pacer.psc.uscourts.gov/ and set up an account. It’s free to set up. Then spend a little time seeing how the site works, navigate to Bankruptcy Courts, and put in the information you have about your debtor. Even if your debtor filed Bankruptcy eight years ago, the records may still be on line. And even if the Bank information is old, a lot of debtors have trouble switching to a new bank because the new banks don’t want them. Try it. You’ll like it.
6) Purchase something from the Debtor:
If your debtor owns a business, you may want to purchase something from him or her, or have a friend purchase something. But remember, according to the GLB you can not misrepresent yourself. Of course, pay for it with a check, and then see where it was cashed. And remember, when you levy on the bank account, be sure to include the name of the business. A business that is not a Corporation is one and the same as the individual who owns it. If you are not sure if the debtor is the owner, the county will have records under business license and Fictitious Business Names.
7) The Judgment Debtor Examination:
Every state I’m familiar with has a means by which you can bring the debtor into court for questioning, and subpoena his or her records in the process. Of course if you ask the debtor where his or her bank accounts are, they may lie or tell you the truth and then quickly withdraw the money or change banks. But knowing ANY past bank is valuable, because you can subpoena bank records to find out where the money was coming from. Also, if the debtor lies and then you are able to produce an account through one of the other means here, then you will likely have some leverage with the debtor and the court.
8) Subpoena the top 10 banks in your area.
When enforcing a judgment, you have more power than you think. In California, for example, case law states that the judgment creditor may “leave no stone unturned in the search for assets.” That’s a pretty wide scope of possibilities. And a VERY effective way is through subpoenas. It’s potentially a goldmine. In most cases it is not difficult to subpoena documents. Ask the court how you can do it, and ask for the forms as well.
An excellent time to subpoena documents is at the Judgment Debtor Examination. I’ve gone so far as to mail off subpoenas to 20 banks at once. It only costs me a postage stamp for each. And you never know what will show up. And getting a subpoena is not as difficult as you think. Check with the court clerk or the legal advisor at court. Forms are there. The cost is a bargain.
On the subpoena you might request “Any and all checking and savings statements of the debtor over the past 3 years.” Most of the banks will simply write back saying there are no accounts there. That’s fine. But then one day you may get a phone call from Greta in a bank’s business department, who tells you that there is a 5 cent or 50 cent charge for each page. Bingo! You may then ask whether that will include last month’s statement. Bingo! The account or accounts are still open! Then you might want to ‘hit’ the bank right then. (Note: Check your state laws regarding “Notice to Consumer.” Your debtor may have to be notified that you are requesting the information. But that’s okay. He or she will feel the pressure. If the debtor objects to a subpoena at a particular bank-‘hit’ that bank.)