16 LEGAL WAYS TO FIND A BANK ACCOUNT

You probably came to this site because:

·      you won a money judgment, 

·      you run a collection agency,

·      or, you have a business enforcing judgments.  

You know that locating a Bank Account is a good way to collect the money that is owed you.    With a judgment you can apply for a Writ of Execution at the courthouse and have the Sheriff, Marshall, or a Registered Process Server “hit” the bank.

There are many websites that will charge you money for the information that we will be giving to you.   We believe it should be available to everyone for free.   That includes the “how to” and the “what not to do”.    The “what not to do” is very important so that you do not run into problems of breaking the law.

What we are going to say here is not legal advice.  We are not an attorney, and only attorneys can give legal advice.  But we can make some observations, and share some of our experiences.   If you benefit from them, that’s all the better.

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 quite bored.  

We have been told that the GLB was concerned with identity theft.  It has even been suggested to us that those who want financial information simply to collect money owned to them, are not involved in identity theft, and therefore the GLB does not apply to them.   Others would say that this is creative thinking.    We are not an attorney, but to our mind it is still too early to see how that might play out in the courts.   A violation of the GLB is not something we would be involved in.

So what are the legal ways to locate bank accounts?   Some we will share here and are obvious.  Some others are creative.   Some others are daring.    It is always up to the person obtaining the information to do it the legal and correct way so here we go:

1)   Use a check the debtor wrote to you:    

Yes, this is obvious, and 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 a Writ of Execution 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 or the branch 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.   Banks in California will not verify funds over the phone any longer.   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 to get the debtor and money out of them.    It’s a two step process:  Call the city and see when the debtor’s trash is picked up.   Then go get it.  

We 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.  Just be careful with your waste.

“Is it legal to dumpster dive?” you ask.    Well, if we were an attorney we 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, We’ve been told that there is case law that says that once the trash is on the curb it is fair game.  But we are 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-judgment 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.    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 that we are 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.   We have 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 JoJo 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.)   

9)  Subpoena Vehicle Records

Does your debtor own, rent, or lease a vehicle?   The license plate will often tell you where he or she got it.  Then subpoena the applications from the dealer.  To get the best auto deal, the debtor was probably quite liberal in stating his assets and income.  You may also find out where the debtor works.  Bank accounts will also be listed.   Applications are terrific sources of information.   Go for it!

10)  Subpoena Rental or Mortgage Applications

Whether your debtor rents or owns a home, there is a paper trail available to you.   If the debtor rents, send the manager or owner a subpoena for the “full application and all other records relating to the rental of properties, as well as any copies of debtor’s checks maintained by the manager or owner.”  

If the debtor owns a home, you can probably go on line a get a copy of the “deed of trust.”   Then you’ll know who the mortgage holder is, and you can immediately subpoena the mortgage application.   Again, the debtor will have made a very positive assessment of his assets.   And it’s yours for the asking.  (You may be required to notify the debtor with a “Notice to Consumer, if your state requires it”)

11)  Subpoena Information from Employer

Some employee information is confidential.  However, which bank the debtor’s wages are sent for direct deposit is fair game to request.   Subpoena  those with a Notice to Consumer.

12)   3^rd Party Judgment Debtor Examination:

We are not familiar with the laws of every state, but in many states you can require that someone who owes the debtor money or who even “knows” about debtor’s assets can be required to appear in court and answers questions.   Check with your court, and check the codes of your state online.    If it’s doable, do it.    Bring the person in and ask the questions you want.   In California it is possible to bring in the landlord of the debtor, and even his employer!  Talk about getting the debtor’s attention!       

13) Shotgun Levy

Most people bank within a 2 mile radius of where they live or work.   So go to Yahoo Maps or Map Quest, put in the debtor’s address, and check to see what banks are in the immediate area.   Choose the five main ones, get a writ and have the Sheriff or Marshall levy on all five of them.   You may get a  ‘hit’ on more than one!  

A writ is usually less than $20, and a levy is probably around $35 dollars for each using the Sheriff's or Marshal's Department, but they can be slow or you can utilize a Regisered Process Server for faster results.   That’s not much for what you may gain.   It will also freeze the debtor’s account, and his checks may bounce.   But you wouldn’t want that. Ha!

14)  Property Records at the County:

If your debtor owns real property he or she will pay property taxes.   In some states and in some counties the check you write is part of the public record at the Assessor’s Office.   More and more these records are user friendly.  What used to be on microfiche and microfilm is in many cases on the county computer, and even on line.  Check the records at the county.  See if it applies to you.

15)   Find Out What Other Creditors and Debtors Know:

The Court House computer is another treasure of facts.    Much of it is even on line now, and more to come in the future. 

If you put your debtor’s name in the court computer you’ll discover old judgments, cases that were dropped, people who are other debtors, old landlords, and likely a general cross section of the debtor’s personal and work associates.   You never know what you will find.   Take notes.  Pull the files.  Take more notes.   Call all the people you can, and find out everything you can.   Debtors are creatures of habit, like most people.   They likely will have been banking at the same bank for years.  Send your subpoena, or sent out a levy.

16) Call the Banks and ask about the Debtor.

We know, We know.   We said don’t call the bank and tell them you want to know whether the check you have is good.  And we mentioned that any misrepresentation is against GLB.   But we do not suggest any misrepresentation.  

What if you just called a bank and said, “Hi, my name is (your real name), and we have a Court Judgment against (debtor’s real name).    The case number is (case number) , and we need to know if he/she has any accounts with you.”

One mutual company that we know actually tried this, and found that if he called 10 to 15 branches from a particular bank, someone who answers would  give up the information.   Someone will be impressed that it’s a court judgment, and say, “Oh, let me check.   Yes, he has an account with us, but I can’t give you any other information.  I’m sorry.”    Or, they will say, “I’m sorry, no accounts here.”

The point is that it may take you an hour to call 10 branches of a bank until someone cooperates.   You are not misrepresenting yourself.  You are exactly who you say you are.   

FINAL COMMENTS:

The debtor owes you money, and you want it.  It may take some effort, but we encourage you to do it.   80% of judgments are not collected at all!   The courts don’t help, and the Sheriff’s for the most part just deliver papers.    

So we have to do it ourselves, or get someone to do it for us.   We suggest doing it for yourself.   Yes, there may be some initial frustration.   But when you get to know the “system” pretty well, you’ll be a better and more informed citizen.   You will probably also get some of the debtor’s money in your pocket, and there is more than monetary satisfaction to doing that.

Another possibility is to get an attorney or collection agency to get the money for you.   It could cost you from 30% up to 50% of what is recovered, but if you simply don’t have the time or if your debtor is not in your area, that’s a responsible next move.