Can Judgment Creditor Garnish Debtor's Account At An "Internet Bank?"
My work for one of my clients involves this interesting question about bank garnishments. Most people bank at local branches of traditional banks, such as Sun Trust, Bank of American etc. A judgment creditor can garnish funds in any of the debtor’s bank accounts by serving a writ of garnishment on the bank. One of my clients banks only at so-called “internet banks” such as ING Direct Bank or Ally Bank. These internet banks typically offer money market and saving accounts with limited check privileges.
The question which came up is how and where does a judgment creditor garnish an “internet bank account” when the internet bank has no branches in Florida. ING Direct has branches in six states other than Florida, for example. Can the creditor serve ING Direct a write of garnishment from a Florida court, or does the creditor have to domesticate the judgment in a state where ING Direct has a branch? Is an internet bank like ING Direct subject to garnishments in any state because internet banks, by doing business over the internet, is does business everywhere its customers reside?
I’ve spoken with the legal departments and operation managers at two very large “internet banks.” Neither bank recalls ever being served a writ of garnishment from a court outside their home state. First, the bankers explained that there is no such thing as an “internet banks”. These banks, including ING Direct and Ally Bank are traditional bank with at least one brick and mortar branch somewhere. Your deposits in an internet bank are not floating in the internet cloud; your money is commingled with money deposited in their bank by mail, direct deposits, and ATM machines. The “internet” aspect of an “internet bank” refers only to the way they market deposits. The bankers at both internet banks told me that although they have never had to answer this question they think that a creditor in Florida would have to domesticate the judgment in another state before garnishing the Florida debtor’s account at their “internet bank.”
My initial legal research suggests that internet banks based in one state are not subject to the jurisdiction and garnishment writs of all other 49 states just because they offer online banking and accept deposits via the internet unless the bank demonstrates an intent to target customers the debtor’s state.
Does this same rule of law apply to an out of state Credit Union that has deposits from a florida debtor?
Isn't the issue whether or not the bank is subject to long arm jurisdiction in Florida? If they advertise in Florida, via browers pop-ups to Florida residents, buy radio, tv or print ads in Florida media and then accept deposits from Florida residents I would think they satisfy minimum contacts. If they ignore a garnishment from a Florida court they do so at their own peril.
i had a concrete company,in fla business went bad and i owed $4000.oo,to a concrete vender.he recieved a wit and had my bank account garnished $7oo.00.and also he took $200.00 from my 4 yr old daughters acct,and 3 yr sons acct($200),i had a custodial acct for them.also they drilled out my safety deposit box.i had about $400 in bonds that my father had for the children with their names on it they did not touch the bonds.
My question is can i ever put money in another acct,without the fear of another wit?my acct was in the company name.
how can i move on with out this fear..please help