If you are in debt, you may be surprised to wake up one day and find that your money has been garnished due to collectors. You may be curious as to how they found you, and your accounts. Many are wondering how do creditors find out if you have opened a new bank account, or if it even legal!
So how do creditors find out if you have opened a new bank account? There are a few ways, all legal as well. They can actually hunt you down by your Social Security Number, as we know this number is tied to our entire lives! Although with any method they do have to file a judgment or lawsuit claim in order to levy your accounts for monies owed. However, this is perfectly legal and can result in loss of monies from your new account, simply setting up a new account won’t stop creditor attempts, it will only distract them momentarily as they will have to hunt down your new accounts.
They can also find you by subpenaing you to give up your information, also only legal if they have filed a judgment against you for your information. Usually however, they contact the courts and once approved they can file to have your information released. Why? Well generally when they garnish wages they start taking the money owed before even telling you, which is also legal!
One final method they can use to find your new bank account to seize monies owed is to hire a P.I. That specializes in tracking down individuals and their information according to the Nations Check Fraud Center. Once these acts are taken your information is no longer private to the creditors and they can find anything about you and start seizing properties, monies and any other assets you may have.
However, the most common tactic creditors use to find your new banking account is by doing a “skip” trace to find where you live. They then call all the banks in that area, once they get a hit so to speak and find that you are banking there, they can then file a writ of execution to the bank, which will then have to give up your personal information. This is the usual method and is completely legal.
If a creditor has filed a judgment against you and you are trying to hide from them in order to save your money, you should either stop using a bank account all together, or call and make arrangements. All methods described above are completely legal and can result in an even worse credit score and loss of money you use for your current bills. If any of these actions have been taken you may consider hiring an attorney or a debt relief agency, to help stave off these companies. Either way, creditors can find your new bank account and begin their collection process.
Published in: Personal Finance