Bank Accounts on CRs -- How CA's Find Out

Posted by Judgmental (12.228.108.56) on January 11, 2004 at 22:49:02:

In a recent thread, someone asked if bank accounts show up on your CR and if CA's can find your accounts that way.

Bank accounts can be found via your CR without a lot of effort on the part of the CA. The CA does not necessarily have to invest a lot of time and money in asset searches to burn you when it comes to your bank account.

1. Overdrafts and lines of credit.
If you have an overdraft on your bank account that is a line of credit, the overdraft LOC may not show up on your CR *UNTIL* you a) access it, and/or b) miss a payment to repay and/or c) carry a balance longer than a certain period of time.

I have a tradeline on my CR right now for a line of credit from an overdraft facility on an account that's over 11 years old! The tradeline didn't show up on my CR until AFTER I CLOSED THE BANK ACCOUNT associated with it. I called the bank and they said it's their standard procedure. Thank God that tradeline is positive.

Also, when you open a bank account and apply for an overdraft line of credit, that is a credit product. So, your bank may pull your credit report and that will show up in the inquiry section. It's a dead give away.

2. Checkcards and Debit Cards
If you choose to have a checkcard or debit with a MasterCard or Visa symbol, your bank may opt to pull your CR before issuing that type of card instead of a vanilla ATM card.

3. Personal Loans, Lines of Credit
If you apply for a personal loan or other line of credit at your bank, your CR will be pulled and that will turn up in the inquiry section.

4. Bounced Checks
If you have bounced a check referred to collection and that CA pulls your CR, all the CA would have to do is call the establishment trying to collect and simply *ask* which bank the check is drawn on.

Ex:
Check Collection, Inc on behalf of
Mama Mia Pizzeria, Lake Coco Bongo
Permissible Purpose: Collection

CA makes ONE phone call: "Hello, is this Mama Mia's? My name is Barney Fife. I think I bounced a check with you. I want to settle up. Can you tell me which bank the check was from?"

In these scenarios, it is not very difficult for the CA or any other creditor to find out precisely where you do your banking. Once they know the name of the bank, all they would have to do is call up your bank on the right day and speak to a rep who is easily manipulated or just unaware of what is appropriate to disclose over the phone.

Also, although it is unpleasant to think of, the banking industry is filled with jealous people. Yes, jealous, mean-spirited, bitter people. These are people (such as tellers and bank managers in the BRANCHES, etc) who deal with large amounts of money all day, yet get paid very little by comparison. They can not be trusted to protect your information.

Even so, a breach of trust is *not even necessary* on the part of the branch staff, because many CAs are already in possession of all the information about you required to get account information over the phone!

Such as ...

1. Full Name
2. SS #
3. Address
4. Mother's Maiden Name
5. Birthdate

Yes, it would be illegal for them to do that, but they do it and they will do it. And, how will you prove it or fight it? How will you even *know* if that's how the came to have the information? The bank won't admit to giving away the info to the wrong party. And, the CA won't admit to breaking the law, if they have any sense.

Don't depend on whatever stealth you *think* you have to protect the funds in your account.

Once again, I say verily unto thee, leave the bare minimum in your bank account to keep it open and avoid penalties.

Become intimately familiar with the cash-and-carry lifestyle until your situation improves. At the very least, it will keep you honest.

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