How is a sweep of banks conducted on collections

[Bettyr]

How does a credit agencydo a banks sweep. (ie checking all banks for
accounts in your name) Is a judgment required? Can the agency take
money from an account without your knowledge.

 

[Michael Wechsler]

Credit agencies are reporting based and do not remove money from the accounts of debtors.

 

[John_Nobriga]

Typically a Judgement is needed, otherwise, may violate the Gramm-Leach bill (Law). Collection Agencies typically seek out the assets for the execution of the Judgement. Will then Serve the Banking Intitution with a "Writ Of Execution" on the Banks. All of this is typically done for the Plaintiff or Plaintiffs Attorney. The Assets in the Accounts are then "frozen".

 

[Michael Wechsler]

Frequently, accounts are frozen with a judgment and a service of an "information subpoena" and "restraining order" -- served together. That requires the bank to freeze the account for the amount of the judgment (which is contained in the order and includes interest from the date of the judgment.)