Expert: Regan Shinski - 4/7/2009

Question
Dear Regan,

I wonder how, exactly, creditors are able to find any bank accounts a person might have?

Do they merely search for a person's social security #, or name, or both? Do they request information from every single banking institution in the country - or mostly the larger banks in the same state?

I have been told different things, and am curious what your experience is.


Answer
Kim:

I sorry to say this is really not my area of expertise as I really specialize in credit related issues.  I can tell you that bank account information is not listed in your credit files with the three credit reporting agencies.

I am fairly confident that if someone really wants to find you or your bank account, they can do so fairly easily.  Private investigators have been effective in skip tracing for years.  I'm sure there's some type of central system by bank routing numbers and SSN, but it is not related to credit or the credit reports.  If you ever paid the creditor in the past with a check (phone or hard copy), they can likely back-track to that account through their bank.

I'm sure you know they need a judgment, lien, or other court order - or a pre-authorized approval from you - to get money from your accounts.

If you really need to protect your funds, I would become a "cash" consumer.  In extreme cases, creditors can still get court orders for other assets including tangible merchandise, real estate or other property.  But unless it is a governmental agency or some REAL serious money, that is highly unlikely.

Good luck.  Sorry I couldn't answer with more specifics or certainty.  You may want to contact an attorney or even a CPA. You can also call a PI.  Maybe say you are a creditor and see what methods they have available to "help" you.  Bankruptcy may be an option if you are terribly worried about maintaining even a basic lifestyle.