garnishing wages OR raiding bank accounts!

[ejny65]

[HHM]

They have to sue you first and get a judgment, so, yes, you would get notice. Then they can garnish wages and raid bank accounts.

[rilbrianne]

I agree. They would certainly have to get a judgement.

The credit card companies will jump off the deep end to threaten people. I watched a 1 1/2 hr movie online about credit card companies threats. People have killed themselves when credit card companies would call and harass them so badly that they were too scared and worried about their debt. College kids, older folks. It's horrible. Don't you worry about them, they are just talk. And you can talk right back at them. Good luck, have you filed yet or are you still in the consideration mode? just curious.

[ejny65]

Thanks for both replies. I have spoken to a lawyer, have not retained yet. I am considering and getting ready to file. Calls are more than I can handle . No need alarm clock, discover will wake us up early in the morning, and by the minute, and citi too and others too.. anyways thanks.

[krielly]

Do you have any loans with your credit union? if so, they may have cross-collateralization clauses, long story short, they DON'T have to notify you or obtain a judgement to seize or freeze your funds.
I don't believe that other banks, cc companies, etc.....can get to the money in your credit union account, but if you owe your own credit union money, and you have signed a loan doc with that clause they certainly can and unfortunately will.............

[wingnut]

Approximate timeline

Hey,

Although each company obviously has its own policies, I have noticed a general trend regarding collection tactics. The way I see it, there are 4 major phases:

0-30 Days Past Due:

- A late fee.
- Possible interest rate increases.

30-90 Days Past Due:

- Monthly late fees.
- Calls from in house collection representatives.
- Some collection letters.
- Eventually the interest rate is increased to the "Default Rate", usually 30+% APR.

90 - 180 Days Past Due:

- Monthly late and / or overlimit fees.
- Calls from in-house collection representatives.
- Calls from "subsidiary" collection representatives. These companies are typically affiliated or owned by the original creditor. I'm pretty sure that they do this so that they can still charge the usurous "Default Rate", usually 30+% APR.
- OFFERS TO SETTLE THE DEBT FOR 30%-80% of the outstanding balance. Usually in lump sums, however...

180+ Days Past Due:

- Creditor usually sells debt to an outside company. Typically they only received 10-30% of the outstanding debt.
- Calls and letters from new debt owner.
- Offers to settle the debt for a reduced amount. Amount is usually higher than the pre-sale offers, so if you're going to settle, it's usually better to do so before the debt is sold outside of the company.
- Arbitration. Due to extensions and objections, this can take months, and many cases get Dismissed without Prejudice. Typically not the initial choice of debt buyers. Used to secure...
- Garnishments. A court order is necessary first. Once a judgment is rendered, the state's judgment rate applies, usually less than 9 or 10 %

Basically, it seems that at least 9 - 10 months must pass between the 1st missed payment and the inevitable wage garnishments.

Based on personal experience, it probably takes much longer than that. I stopped paying my cards around April of 2006. Only 1 of the outside companies tried Arbitration. The case ran from February to October, and then was Dismissed without Prejudice. They, and no other debt owners, haven't tried again since. So, I'm at least 20 months past due on what used to be my credit cards, and no garnishments yet.

Perhaps if more people were aware of this bill collectors would be a bit more polite and professional. Or, perhaps they act like jerks in order to scare people into believing that the collectors are more powerful than they actually are.

BEST OF LUCK,

WINGNUT

PS: REMEMBER, the time-frames are approximate. However, as far as most major companies / everyday consumers are concerned, this is typical.

PPS: Try putting THEM on hold for once. Set your phone down and play nutty music for them. The crazier the music, the longer they stay on usually. In case you're bored...

[Rintaro]

Can A creditor with a judgement against me levy my bank account? How do they Obtain my Account info if it is a new bank?
Can they pay someone to locate that info?

How can i protect my Bank from them filing a levy does anyone know of any banks that are safe from Judgement levy?
Is my spouses bank safe so long as my name is not on it? She banks seperatly from me and the debt is solely mine.???

[treehugger1]

A creditor/CA can levy your bank accounts in most states. How can a creditor or collection agency find your account? If you ever paid the original creditor with a check, or online, etc, then your routing number and account number were available to them.

If you have a new bank account, it is likely that the new bank ran a check with chexsystems or a credit reporting company. I'm not sure if such checks are available to other parties. If you are concerned that a creditor might legally or illegally get to your funds, you might want to minimize what you have in your account until you have sorted out your financial situation.

I don't think a creditor can attach your wife's account. Then again, I don't know the laws of individual states (some are community property states and some are not.)

There are other means of depositing funds without actually holding a bank account. Western Union and many other companies now offer debit cards that work very much like a bank account. Technically, I don't think these are true bank accounts and they are probably difficult to locate. You can also have paychecks direct deposited into many of these pre-paid debit accounts. Some of these accounts are FDIC insured. I can't vouch for any particular one or know what safety factors are involved, so you should take care with your own due diligence.

Bottom line is that if you have a traditional checking account and a judgment against you, eventually someone will find the account.

[Rintaro]

Ca is a Comunity Prop. state but none of the debt is hers so I am wandering if Her bank account is safe

A creditor/CA can levy your bank accounts in most states. How can a creditor or collection agency find your account? If you ever paid the original creditor with a check, or online, etc, then your routing number and account number were available to them.

If you have a new bank account, it is likely that the new bank ran a check with chexsystems or a credit reporting company. I'm not sure if such checks are available to other parties. If you are concerned that a creditor might legally or illegally get to your funds, you might want to minimize what you have in your account until you have sorted out your financial situation.

I don't think a creditor can attach your wife's account. Then again, I don't know the laws of individual states (some are community property states and some are not.)

There are other means of depositing funds without actually holding a bank account. Western Union and many other companies now offer debit cards that work very much like a bank account. Technically, I don't think these are true bank accounts and they are probably difficult to locate. You can also have paychecks direct deposited into many of these pre-paid debit accounts. Some of these accounts are FDIC insured. I can't vouch for any particular one or know what safety factors are involved, so you should take care with your own due diligence.

Bottom line is that if you have a traditional checking account and a judgment against you, eventually someone will find the account.

[howie789]

Wingnut

I saw your earlier post from 12/31/07 on arbitration. you mentioned-

"Only 1 of the outside companies tried Arbitration. The case ran from February to October, and then was Dismissed without Prejudice"

What did you do in February (or before), that caused them to dismiss in October? Did you respond to the arb letter or show up for the arb hearing? Did you send a cease-and-desist letter?
Thanks- I am trying to put off filing and waiting to pick up my FED EX notice- I got a door tag- after tracking it - it originated in Marietta,GA- home of Mann-Bracken (attorneys).

[howie789]

bump