How do creditors find your bank accounts to levy?

Hi Protecting bank accounts

As far as I know, the creditors can trace your bank account through your social security number. Now, it is not that any creditor can trace your bank account. Creditors need to bring judgment against you to garnish your account in order to trace your account. If there is judgment against you, it will not be considered a phishing attempt.

No, creditors cannot trace anything with social security numbers...they have no access to any data base.

They simply send copies of the garnishment order to all the banks in your area until they get a hit. Fairly simple...most people bank close to home.

if you have a joint acct. can the bank hold money for that debt collector even though the debt is not in the other persons name.

anything in a joint account is fair game.

You might be surprised to know that the privacy laws regarding financial data (Gramm Leach Bliley Act) specifically allow the release of information when it pertains to collection/enforcement of a credit transaction. Therein, you basically have no privacy rights when your information is released in the ordinary course of business for collection purposes.

That being said, there is no master database a creditor can go to find your bank account. But they can use various methods. For example, I might pull your credit report and see that you're current on your car payments. So then I go get a subpoena against that lender, and demand they produce any records relating to payments you've made to them. If you've paid them by check, now I have your bank info.

Now I've only dealt through actual legal process by my attorney. I don't think the Joe Shyster you reference would be able to obtain such information without having a judgment first.

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Just wondering how creditors can track down your cell phone number when it is unlisted?

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Heres ONE, JUST ONE company that can provide CA's and creditors with your bank account info. http://www.jcsusa.com/

A few weeks ago, I made attempts to take care of my delinquent credit card balance. The credit card is named after my banking institution. During the conversation on the phone, the woman who worked for the creditor said, "You have enough money in your account to make the payment and your paying your other credit cards." After I got off the phone, I wondered if the conversation was unethical. Can a creditor tap into my personal account? What are my rights and how do I complain about this situation?

um as far as i know they know your bank if you pay them by check, etc. than they send everything to the sheriff's office who can request your account number for a court order to levy it. i could be wrong and someone collect me if i am but i am pretty sure that is how it's done.

you are wrong -- well not entirely. obviously thats one way, but not the only way. as stated before a collection agency can simply send an officer of the court to banks near your house to see if you have an account. if you do they serve the court order and levy the account.

^^ that is what I was referring to but using sheriff officers instead of court officiers.
i do not think that is fair to be honest because often they have no warning.

Capital One did the same thing to me; told me they had my bank account number and that I could make a payment. I was shocked they had this info.

I may go back to having paper check issued instead of direct deposit and use money orders! I feel like big brother is hovering over me.

aubrey i was like that for a long time after my payday loans (i cleared them up over a year ago). i still rarely use my banking account. i have direct deposit but usually withdraw money from the ATM and use cash.

I don't know every way they catch you. However, I do know a few: Setup a second chance checking account, with no credit checks. Don't use your debit card for anything (or as little as possible), carry cash instead. Take all most all of your money out of the bank as soon as you get it, if you must use direct deposit keep a hundred dollars or so in the bank.

Don't rent a car with your debit card (you'll get sued within 2 weeks). They have credit cards for people with bad debt. I would suggest you get one and use one only for necessary purposes. If for some reason you do get caught again open up a new checking account. The loss shouldn't be too bad if you follow the above rules.

Now if they levy your account you are in a whole new state of affairs. If you live in the States of: North Carolina, South Carolina, Pennsylvania and Texas they can't. But they will try anyways especially if you work at a large company with multiple locations.

Banks very seldom will sue for less than 2500.00. They will write off the debt and the i.r.s. may hit you for taxes on the amount written off.

I was a collector and I would say that line about them "having enough money to pay" even though I didnt have that info. If they didn't disagree with me I knew that it was probably true. However we could look at the credit reports anytime and we would see if you had paid your other credit cards or mortg payment in the last few months.

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They cannot touch your pensions or social security.

Now what if you're married and do not have a checking account? Can a collection agency levy your spouses checking account? I'm a stay at home and do not work. The debt that I have is prior to my marriage. I just closed my out of state banking account because a levy inquiry was put on it- and now the agency won't return my calls for payment plans. So I felt find don't work with me, I'll close the account. I want to go onto my spouses checking account, but don't want that account to be "discovered" and then have a levy inquiry done. It seems that after we filled our taxes - the return was put into my checking, that my checking was levied.

If your name isn't on the account, they shouldn't be able to touch it.

Most banks pull a credit report through one of the major 3 reporting agencies or thru check systems when they open your account. Collection agencies are members of these bureau and when there is an inquiry from one of these bureau they have you. Having worked in collections before, our major source of info was from the state unemployment office for job and the credit bureau for inquiries and accounts.
In fact, credit collectors can put an allert on your credit file so that they are notified anytime there is an inquery. For example, if you move, the apartment complex gets a report. The collection agency sees the inquiry and calls the complex.
You open a new account, the bank pulls a chexsystem report on you. The collection agency then sends the bank interrogatories to find out if you have an account there. If so, the bank fills out the paperwork and sends it back to the court. The creditor then files a garnishment with the court and attaches any funds in the account.
A personal relationship with people at the bank is the best way to guard your funds. If a interrogatory comes your fiend will let you know.