QUESTION
Is it illegal to use bank info to collect a debt?
Asked on Mar 26th, 2014 on Civil Litigation - Tennessee
More details to this question:
I made a statement with intent to collect a debt from a person who owes me money. In the statement I said that I had this person's bank information, which this person gave me prior. Is this illegal? I have not done anything and I do not actually have the info. It was just a pressure tactic to get this person to pay on the debt owed. This person showed this to their bank and got their information changed and the bank told them to press charges. As far as I know, I have not done anything illegal or anything that a debt collection agency might do.
1 ANSWER
I'm not exactly sure what you mean when you say you "made a statement", but if your intent was to blackmail the debtor by implying that you would either share the bank info with the general public or use it to try to trick the bank into giving you money from the debtor's account, that is probably illegal (I'm not familiar with Tennessee law specifically).
You say this person owes you money, but, absent a contract providing for it (and maybe not even then) you have no right to garnish the debtor's bank accounts, or take his property, until and unless a court agrees that you are owed money and awards you a judgment. Even then, you must follow the proper legal procedures for any actions you take to collect on the judgment.
Answered on Mar 26th, 2014 at 11:04 AM