Can A Collection Agency Garnish My Wages?

Can A Collection Agency Garnish My Wages? 1

From what my clients have told me, this danger occurs with great rate of recurrence. The typical situation is that the individual has defaulted on a credit account. From what my clients have explained, this danger occurs with great regularity. The typical situation is that the individual has defaulted on the credit account. The initial creditor, whether it is Citibank or Capital One or whomever, fails in its attempts to get the defaulting individual to pay. The individuals debts is now referred to as “bad debt”. Many times, the original creditor only will give up and sell the “bad personal debt” to another company, like a collection company, for pennies on the buck, sometimes even less.

The collection company then attempts to collect on the bad debt to make good on its investment. Initially, there may be a phone call or two, and a letter from the company to the individual then. If the account is not immediately paid completely, some collection agencies turns their efforts up a notch or three, and start to make threats to the average person.

The most common threat is that the individuals income will be garnished. Quite often, the agency will tell the individual that the income will be garnished “next week” if the accounts is not paid completely, or, in the alternative, if a considerable payment is not made on the account. If this occurs for you it could actually be a positive thing because the debt collector will have just violated the Fair Debt Collection Practices Act. The Fair Debt Collection Practices Act is a federal government law that regulates and mandates just what a debt collector can do in its efforts to collect on the monetary debts.

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In my experience, I’ve found that many debt collection companies violate this statutory law on a daily basis. I could say with certainty that there is no law in the land which allows a creditor like a collection agency to garnish your wages without due procedure for law. Due process, in a nutshell, is the ideal that you must be permitted to present/protect your case in a courtroom of legislation.

Everyone is eligible for their day in court, no matter how open up and shut the case may show up. If a debt collector threatens to garnish your wages without the filing of the civil lawsuit, be sure to discover who you are speaking to exactly, what company these are with, their address and return contact number.

Be sure to notice the time and time of the call as well. Then, contact a Consumer Attorney locally to start formal proceedings against the debt collector. Under the Fair BUSINESS COLLECTION AGENCIES Practices Act, you will be entitled to monetary damages and recovery of your lawyer fees. In this regard, many consumer attorneys do not charge a retainer to institute one of the actions, or, they charge a little amount and attempt to recover the fees from the offending collection agency. If all goes well in your lawsuit, your debt will not have to be paid, you end up with a few bucks in your pocket, and your attorney fees are paid as well.

Can A Collection Agency Garnish My Wages?
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