What Happened to Bank Searches?

On November 12, 1999 the Financial Services Modernization Act was signed into law by President Clinton. Using false pretenses to obtain bank account information from either banks or bank customers is now a federal crime.

The law applies to all banks and financial institutions including stock brokerage firms, insurance companies, loan companies, credit card issuers and credit bureaus.

The Act applies to those persons who use false pretenses and any third party requesting the information when it is known or should be known that false pretenses will be used.

Certain limited exemptions do apply. Exempt parties include law enforcement agencies, financial institutions, insurance companies conducting claims related investigations, and state-licensed private investigators that are attempting to collect delinquent child support. However, in this case private investigators must have a court order in hand authorizing the bank investigation.

© 1992 - 2005 Bearak Reports, Inc.  All rights reserved. 
Bearak Reports -- 1257 Worcester Road -- Suite 308
Framingham, MA 01701