Excellent NYT story on debt collector issues

[nickifan]

http://finance.yahoo.com/banking-budgeting/article/109247/pay-garnishments-rise-as-debtors-fall-behind?mod=bb-creditcards

If that doesn't work go to the Finance tab of yahoo and you should be able to find it.

So glad I am in a state now where they cannot garnish paychecks at all!

EDITED TO ADD: Sorry I did not see that another thread was already posted in this forum on this article. I haven't been here for several days and hadn't scrolledar ound.

[nokia123]

sad

i read this on yahoo yesterday and wanted to die. that had always been my fear, so i made changes to my payroll and banking deposit just for that very reason.

[onthebrink]

Do you know if they can garnish wages in California?

Thank you.

[nokia123]

Do you know if they can garnish wages in California?

Thank you.

i don't know i live in ct. they will garnish / debt your account with no problem here in ct.

[carol7lynn]

Do you know if they can garnish wages in California?

Thank you.

Yes. They can take up to 25% of your wages but if you can prove hardship you can get that reduced or set aside. Here is a link to the two forms you need. One is a financial statement and the other a request for exemption.

http://www.courtinfo.ca.gov/forms/fillable/wg007.pdf

http://www.courtinfo.ca.gov/forms/fillable/wg006.pdf

C7L

[onthebrink]

Yes. They can take up to 25% of your wages but if you can prove hardship you can get that reduced or set aside. Here is a link to the two forms you need. One is a financial statement and the other a request for exemption.

http://www.courtinfo.ca.gov/forms/fillable/wg007.pdf

http://www.courtinfo.ca.gov/forms/fillable/wg006.pdf

C7L

Thank you!

[flyinbroke]

THere are only four states where garnishing wages is prohibited.

[keepinitreal]

I was reading the reader comments for this NYT article and came upon this one that I think is very interesting:

"I worked in debt collections for many years. Debt Collectors are not paid to be your friend. Do not expect sympathy- we are told to be empathetic but to get PIF (Paid In Full). There is a board on the wall of every agency. After a payment you go up and write on the board how much you got on the call. You are ridiculed for every 50.00 one you put up. If you get 200.00 per month with post dated checks then you might be allowed to keep the account. My base pay was 13.00 per hour. I had a 'budget' of 8000.00 in fee (.20 on the dollar) which means that my the last collection day of the month I had to have at least 40,000. Above that I got 25% as a bonus. You get 10% of court cases where you do asset verification and documentation preparation. I got 250,000 worth of new business per month and we hold accounts for 3 months. You work until 9 PM, work Saturdays, drink coffee and smoke like a fiend. If you have not killed your conscience, then you have trouble sleeping. Caffeine and 'sob stories'.

Yes, many read scripts. They do this because the FDCPA imposes fines and states pull business licenses of collection agencies that get too many complaints.

Yes, debt collectors buy debt for .30 on the dollar, then they scrub them for bankruptcy, death, or left the country. Then they pay to run a CBR on you, then they spend thousands a month on skip tracing tools. This is done so that when I call you, I often times know where you work, live, name and number of your relatives and neighbors, the VIN number of your car, how much you paid for your house, how much you pay in child support, and the name and phone number of the CEO of your company. (Would I call a CEO? Yeah. I called a woman at home one day and she blasted an air horn into the phone., laughed and hung up. The next day I called the head of the bank where she worked. She called back, cursed me out and then sent the cease and desist letter. We have 5 choices after that: sell the debt, Bank levy, wage garnishment, lean on property, or asset seizure. 2 months later we seized her 1967 Corvette and sold it at auction. I got a flat screen with my bonus that month.)

A question for Leann after she decided to ignore the court hearing:

-Would you ignore a speeding ticket and then be surprised if you went to jail when caught driving on a suspended license?

I would also be willing to bet that Leann Weaver's grandmother would have been willing to lend her the $2470, take a lower percentage of her wages to repay it (more likely than not interest free to boot) rather than have her move into her home. I worked Capital One accounts. We were allowed to settle them for 45%; in other words Leann would have paid $1112 on a credit card that had a $1000.00 credit limit. Pay grandma back 93.00 per month for the next year. But instead she has been evicted (good luck getting a new place with that on your record), has a listing on her CBR that will last 10 years, and paying the full amount, interest, late fees, etc. Harsh lesson.

Advice to debtors:

-If the amount owed is below 1000.00 then most times it is not worth it to pull a CBR. You are placed on a dialer and a teenager will call you. You can say you are living in an apartment, getting SSI, and pay your debts by money order. The collector will not be able to get off the phone with you quick enough. While many will decry this as being unethical, it is just as unethical to see the toll free number pop up, let the call roll to voicemail and then delete it later.

-Record your calls. Not saying the Mini-Miranda within the first 30 seconds of a call is a violation. NYC allows you to call once a month to your place of employment. Sue in small claims court. Most will settle immediately.

-Remember that debt collectors follow a tier approach: Paid in Full, PIF 3 payments, 3 months, SIF (Settled in Full), then monthly payments. Collectors hate payments but it is all about 'this month' I will take 50.00 a month if I am calling on the 31st. Settlements are the best way to go but remember to get the offer in writing.

-Remember that getting angry at a debt collector does nothing but raise your blood pressure. Your anger means nothing to me or any other debt collector. I have a car payment, mortgage, child support and I am going to pay my bills because the last thing I want to to have someone like me calling at 8 AM on a Saturday (BTW- the more rude you are the more likely you are going to get a call at 8 AM as we do set our own calls.)"