Demanding My Personal Bank Account and nothing else!

Hi,
earlier this year I called GC Services to pay off a student loan. I was put on a payment plan which I faithfully paid for 5 months straight. (I gave them my bank account information) I then got ill and called them and told them I will have to miss one payment. During that month, I decided to close my bank account due to the bank fees I was getting and live on a cash only basis. So when I called them back trying to get on the plan again, they told me that they would NOT accept money orders and that they "Need" my bank account information. Informed them that I closed my account and will be willing to pay with money orders. They refused and then sent my employer wage garnishment papers.

This is my problem in which I am planning to sue. My question is, aren't they suppose to accept that form of payment? Despite the fact that I gave them bank account information in that past, It is common knowledge to NOT do so. I don't think any debt collection company should tell me that I MUST open a bank account so they can withdraw payments and as a result of me not agreeing, mess up my credit with a wage garnishment even though I am ready and willing to pay via money orders.

What are your thoughts? Do I have a case?

You missed a payment...if they sent a letter to your employer, that would mean they previously sent you a 30 day garnishment notice giving you the opportunity to appeal and get into repayment. Part of your agreement would have been the ach debits...this is pretty standard. Since the payment was missed and you refused the ach, you go straight to garnishment...you have no grounds to sue.

ACH debits with a federal student loan vendor CA is the only time you are protected....the department of ed and guarantors will not stand for bank account abuse.