Can a Collection Find Out If You Have a Bank Account Without You Telling Them?

If you are behind on debt payments, and a collection agency believes that you are not willing to cooperate in repaying your debts, the collection may file a lawsuit for judgment in the county where you reside. If the court grants judgment, the collection agency may freeze your bank account in accordance with your state's laws. The collection agency typically relies on you to provide bank account information; however, it may also use other means to locate your bank account.

Public Records

Certain legal matters, such as personal bankruptcies and divorces, are public record. This means that anyone can view documents related to these matters. A collection agency that has secured a judgment against you may review these documents to obtain information to recover money you owe. If documents related to a divorce settlement, personal bankruptcy or other matter of public record contain your bank account information, the collection agency may use this information to freeze your account.

Past Account Activity

A collection agency can locate your bank account if you ever made a payment to the agency using the account. This include both paper checks and e-checks, also known as "checks by phone" or ACH payments. The agency may also be able to locate your bank account information from the records of the original creditor if you ever used the account to make a payment to the creditor.

Spousal Cooperation

In some states, a collection agency may divulge your debt and request information from your spouse. If your spouse has your bank account information, and the account is held jointly with your spouse, she may provide this information to the collection agency without your knowledge.

Considerations

Although a collection agency may have means of locating your bank account if it wins a judgment against you, it may also petition the court to require you to complete a financial disclosure form. This form asks for information, including account numbers, of any bank accounts you own. In some states, failure to complete a financial disclosure form may result in imprisonment or additional fines.