If I know where a judgment debtor banks, I’m half-way to collecting on my judgment. That is, of course, until the bank responds “Account Closed” to my bank levy.
What then?
You have to make some lemonade with the lemons, I guess. “Account Closed” suggests that, at some point, the debtor had an account there. If I can’t capture money, maybe I can figure out where it all went.
One way to do that is to subpoena the bank’s records for the time periods that the account was active. To do that, a Tennessee creditor has to comply with the Tennessee Financial Records Privacy Act, found at Tenn. Code Ann. § 45-10-101 et. seq.
The purpose of the Act is to protect a bank customer’s privacy, and the Act prevents Tennessee banks from arbitrarily releasing customer records (where the customer hasn’t authorized the release).
This sounds complicated, but compliance isn’t particularly difficult. The basic requirements are spelled out in the Act: (i) the customer must get notice of the subpoena and an opportunity to object (Tenn. Code Ann. T.C.A. § 45-10-106 ); and (ii) the requesting party must satisfy a number of technical requirements, spelled out at § 45-10-106 (15 days minimum to respond; sufficient identifying information must be provided; a bond).
In response, the bank will provide signature cards and account statements for the time periods requested. The records will show how much came in, how much went out, and where it all went.
Having looked at 100s of responses from Banks, I will tell you: Bank records don’t lie, and they always tell a story. Some involve luxury purchases, vacations, and restaurants I’ve never heard of (and couldn’t afford). Some confirm that maybe the debtor has, in fact, gone broke. Some will lead to other banks and other records to be subpoenaed.
In short, knowing how to subpoena records under the Financial Records Privacy Act is a powerful tool and not particularly hard to get right.
Honestly, the hardest part is knowing what bank to send the subpoena to.
Creditors Rights 101 