How to Request Bank Records by Subpoena in Texas Civil Litigation
Bank records can be critical evidence in Texas civil litigation. They may help identify assets, trace financial transfers, establish damages, confirm payments, reveal financial relationships, or assist a judgment creditor attempting to locate property available to satisfy a judgment.
Obtaining bank records, however, is not always as simple as issuing an ordinary third-party subpoena. Texas Finance Code Chapter 59, particularly Section 59.006, establishes special procedures governing compelled discovery of customer records from financial institutions.
Section 59.006 describes itself as the exclusive method for compelled discovery of financial-institution records relating to one or more customers, subject to statutory exceptions. Texas litigants seeking bank records therefore need to consider both the ordinary Texas discovery rules and the additional requirements imposed by Chapter 59.
What Is a Record Request Under Texas Finance Code Chapter 59?
Chapter 59 broadly defines a record as financial or other information concerning a customer that is maintained by a financial institution.
A record request includes a valid and enforceable subpoena, request for production, or other tribunal-authorized instrument compelling production of a customer's records.
In Texas civil litigation, the request commonly takes the form of a subpoena duces tecum directed to the financial institution.
Texas Rule of Civil Procedure 176 governs subpoenas generally. Among other requirements, a subpoena must identify the proceeding, the person to whom it is directed, the action required, the requesting party, and other information required by the rule.
A subpoena may command the recipient to produce and permit inspection and copying of designated documents or tangible things within the recipient's possession, custody, or control.
When the requested documents are customer records maintained by a financial institution, however, Rule 176 is only part of the analysis. Texas Finance Code Section 59.006 adds important procedural protections.
Step 1: Determine Whether Texas Finance Code Section 59.006 Applies
The first question is whether the requested documents constitute records of a financial institution relating to a customer.
If they do, Texas Finance Code Section 59.006 generally controls the compelled discovery process.
The statute contains several exceptions, including certain governmental requests, receivership requests, and a record request made in connection with a garnishment proceeding in which the financial institution is the garnishee and its customer is the debtor. Tex. Fin. Code § 59.006(a).
The garnishment exception can be particularly important in post-judgment collection proceedings. A conventional discovery subpoena for bank records and a writ of garnishment directed at a judgment debtor's bank account should not automatically be treated as the same procedure.
Step 2: Prepare a Proper Bank Records Subpoena
Assuming Section 59.006 applies, the requesting party should prepare a subpoena or other enforceable record request that identifies the requested financial records with reasonable specificity.
The subpoena must also comply with the applicable Texas Rules of Civil Procedure. Rule 176 provides, among other things, that an attorney authorized to practice in Texas may issue a subpoena as an officer of the court. The clerk and certain officers authorized to take depositions may also issue subpoenas under circumstances specified by the rule.
Bank-record subpoenas should avoid unnecessarily broad requests. Depending on the facts of the case, relevant categories of financial records may include:
- Bank account statements
- Deposit records
- Wire transfer or electronic transfer records
- Signature cards
- Account-opening documents
- Canceled checks
- Records identifying account owners or authorized users
- Other financial records relevant to the claims, defenses, or judgment collection efforts
Step 3: Follow the 24-Day Timing Requirement
Texas Finance Code Section 59.006 contains a timing requirement that can easily be overlooked when preparing a Texas bank subpoena.
A financial institution generally must be served with the record request no later than the 24th day before the date compliance is required. Tex. Fin. Code § 59.006(b)(1).
Counsel therefore should not simply use an ordinary subpoena response date without first considering the additional timing requirements imposed by Chapter 59.
Section 59.006(f) further provides that a financial institution cannot be required to produce records before the later of specified statutory dates, including:
- The 24th day after the financial institution receives the record request
- The 15th day after receipt of the customer's written consent
- The applicable date following a court order after an in camera review
Step 4: Address the Financial Institution's Compliance Costs
Another important requirement under Section 59.006 concerns the financial institution's costs of responding to the subpoena.
Before the bank complies, the requesting party must pay the financial institution's reasonable costs of compliance or post a cost bond in the amount estimated by the financial institution. Tex. Fin. Code § 59.006(b)(2).
Depending on the request, compliance costs may include:
- Document reproduction
- Research expenses
- Postage
- Delivery expenses
- Attorney's fees
- Other reasonable compliance expenses authorized by law
This requirement should not be treated as a minor administrative issue. Section 59.006(b-1) provides that if the requesting party has neither paid the required costs nor posted the appropriate cost bond, a court may not order the financial institution to produce the records or hold the institution in contempt for failing to produce them.
Step 5: Determine Whether the Bank Customer Is a Party
The next important issue is whether the customer whose financial records are being requested is a party to the litigation.
When the affected customer is already a party, Section 59.006(e) places the burden on that customer to prevent or limit compliance by seeking an appropriate remedy.
Potential remedies may include:
- A motion to quash the subpoena
- A motion for protective order
- Another appropriate request for relief from the court
Any such motion must be served on the financial institution and the requesting party before the applicable compliance date.
Different requirements apply when the affected bank customer is not a party to the lawsuit.
Step 6: Give a Nonparty Bank Customer Notice and Request Consent
When the customer is not a party to the proceeding, Section 59.006(c) requires additional steps beyond simply serving the financial institution.
In addition to serving the bank with the record request, the requesting party must:
- Provide each affected customer with notice explaining the customer's rights under Section 59.006(e), together with a copy of the record request, in the manner and within the time provided by Texas Rule of Civil Procedure 21a.
- File a certificate of service showing that the customer received the required notice and record request.
- Provide the certificate of service to the tribunal and the financial institution.
- Request the customer's written consent authorizing the financial institution to comply with the request.
Tex. Fin. Code § 59.006(c).
This notice-and-consent procedure for nonparty bank customers is one of the most significant differences between an ordinary third-party document subpoena and a subpoena seeking protected financial records in Texas.
Step 7: What Happens if the Nonparty Customer Does Not Consent?
A nonparty customer's failure to provide written consent does not necessarily end the effort to obtain the bank records.
Texas Finance Code Section 59.006(d) establishes the next procedural step. If the nonparty customer does not execute written consent on or before the compliance date, the requesting party may file a written motion seeking an in camera inspection of the requested records.
The statute describes this procedure as the requesting party's sole means of obtaining access to the records when consent has not been provided.
During an in camera review, the court may privately examine the requested financial records to determine whether they are relevant to the dispute.
The court may also:
- Order irrelevant or protected portions of the records redacted
- Limit the records that must be produced
- Enter a protective order restricting disclosure to nonparties
- Restrict use of the records to resolution of the dispute before the tribunal
What if You Know the Bank but Do Not Know the Customer?
A more complicated situation arises when evidence identifies a bank account or financial institution but does not identify the customer who owns the account.
This problem may occur during post-judgment discovery when an employer, business, or other third party produces records showing payments or direct deposits into an account that does not appear to belong directly to the judgment debtor.
The procedural difficulty is significant because Section 59.006(c) requires notice to a nonparty customer, but the requesting party may not know the customer's identity.
Chapter 59 does not expressly establish a specific procedure for every unidentified-customer scenario.
Using the Bank as a Notice Intermediary
One potential approach is to request a court order allowing the financial institution to act as an intermediary between the requesting party and the unidentified customer.
Rather than requiring the bank to immediately disclose the customer's identity or financial records, the proposed procedure may allow the bank to identify its customer internally and forward the required notice and authorization materials directly to that customer.
Under this type of proposed procedure:
- The financial institution identifies the affected customer internally.
- The bank forwards the customer the proposed subpoena, statutory notice, and authorization request.
- The financial institution provides appropriate confirmation that the materials were forwarded.
- The bank requests the customer's written consent to production of the requested records.
- If the customer refuses or fails to consent, the requesting party may seek an in camera inspection under Section 59.006(d).
This approach attempts to address two competing concerns. The requesting party cannot personally provide statutory notice to a customer whose identity is unknown, while the financial institution already has the information necessary to identify and contact that customer.
Practitioners should recognize that this is a proposed procedural solution rather than a procedure expressly established by Section 59.006. Whether a court authorizes such a process will depend on the circumstances and the court's ruling.
Bank Subpoenas in Texas Post-Judgment Discovery
Financial records can be especially important during post-judgment discovery in Texas.
Information obtained from one third party may lead to additional evidence about the judgment debtor's financial activity. Employer records, for example, may reveal compensation being transferred into accounts associated with another individual or entity.
Bank records may potentially help a judgment creditor:
- Locate assets available to satisfy a judgment
- Identify accounts receiving the debtor's income
- Trace transfers of money or other assets
- Identify financial relationships with third parties
- Investigate potential fraudulent transfers
- Determine whether additional post-judgment discovery is appropriate
A creditor may initially be searching for an account owned directly by the judgment debtor. Discovery, however, may reveal transfers to accounts owned by spouses, relatives, entities, business associates, or other third parties.
When the requested records belong to one of those nonparty customers, the notice-and-consent provisions of Section 59.006 become particularly important.
A Practical Texas Bank Subpoena Workflow
Counsel considering a subpoena for customer bank records in a Texas civil case can use the following sequence as a practical starting point:
- Identify the financial institution and records needed. Determine precisely what information is relevant and avoid requesting unnecessary financial information.
- Determine whether Texas Finance Code Chapter 59 applies. Confirm that the request seeks customer records from a financial institution and determine whether an exception under Section 59.006(a) applies.
- Prepare a valid record request. Draft the subpoena or other discovery instrument in accordance with the Texas Rules of Civil Procedure, including Rule 176 when applicable.
- Determine whether the customer is a party or nonparty. The customer's status determines whether the additional notice-and-consent procedure applies.
- Prepare the Section 59.006(c) notice package for a nonparty customer. Include the required notice of rights, a copy of the record request, and a written authorization or consent form.
- Calculate the compliance date carefully. The financial institution generally must receive the request at least 24 days before compliance is required.
- Serve the appropriate materials and document service. When subsection (c) applies, file the required certificate of service and provide it to the tribunal and financial institution.
- Address the financial institution's compliance costs. Pay the bank's reasonable costs or post the appropriate cost bond when required.
- Wait for consent or an objection. The customer may consent, seek to quash the subpoena, request a protective order, or decline to provide consent.
- Request an in camera inspection if necessary. If a nonparty customer does not consent, proceed under Section 59.006(d) and explain why the requested records are relevant.
- Seek court guidance when the customer's identity is unknown. A bank-intermediary procedure may provide one possible framework, although that approach is not expressly established by Chapter 59.
Why Compliance With Texas Finance Code Section 59.006 Matters
A Texas bank subpoena should not automatically be treated like an ordinary subpoena for business records.
For customer financial records, Texas Finance Code Section 59.006 is generally an important starting point. The statute establishes procedures addressing advance service on the financial institution, compliance costs, notice to nonparty customers, customer consent or objections, and in camera review when consent is not obtained.
The procedure becomes more complicated when the financial institution is known but the identity of the customer is not. In that situation, seeking court guidance before demanding disclosure may help address the statutory notice requirements while protecting the customer's financial information.
Careful compliance with the applicable procedural requirements can help avoid unnecessary objections, disputes, and delays when seeking financial records in Texas civil litigation.
Understanding Texas Bank Record Subpoenas
Obtaining financial records in Texas civil litigation requires careful attention to both the Texas Rules of Civil Procedure and the special requirements governing financial institutions.
Whether the records are needed to establish damages, trace payments, investigate financial relationships, or locate assets after judgment, understanding the procedures contained in Texas Finance Code Chapter 59 can help attorneys prepare more effective and procedurally appropriate discovery requests.
This article is intended for general informational purposes only and does not constitute legal advice. The appropriate discovery procedure depends on the facts of the case, the status of the bank customer, the records requested, applicable court rules, and any orders entered by the court.
