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Nite454 · Posted: Mon Mar 24, 2008 9:15 am

Not only did this firm threaten to jail me if I did not pay on a debt after not sending a statement, they garnished my primary checking account. Is this legal?

Posted: Mon Mar 24, 2008 9:49 am

Is the debt from a defaulted payday loan? Many of the payday loans have in their paperwork a wage assignment that you need to revoke when you default. The other possibility is did they go to court to get a garnishment order?

IKnowthem · Posted: Sat Apr 05, 2008 11:47 am

If you live in Florida, yes it's legal. I've had dealings with them too. In Florida you DO NOT HAVE TO BE NOTIFIED before garnishment (I found out when I went to cash my paycheck). All they need to show is that the money is outstanding; I was already making payments (which I had initiated) and it didn't matter.
They can be very nasty. They threatened me w/jail if I didn't return a form -- which I had sent them and had proof of their receiving it. If they get nasty, just be sure to send copies of your (tempered) responses to the judge and put in the case file...Good Luck!

Posted: Sat Apr 05, 2008 12:25 pm

I am dealing with them for an old credit card. I set up payment arrangements with them and have been making my payments to them for over a year now. They have been nice to me. Were you making payments to them or the original company? That may be the difference. If they try to garnish my check I have the paperwork from them saying they won't do that as long as I make my paymnets.

Posted: Sun Apr 06, 2008 2:23 am

ok, let's clarify this one a bit, as I believe you are not getting the proper information here.

When you say they didnt provide a statement, do you mean they didnt validate the debt? If you did not send a debt validation letter, do it NOW. Send them a DV request by certified mail, return receipt requested. DO NOT WAIT ON THIS. If you havent done so, and you need a copy of a DV letter, we have one in the do-it-yourself section that you can customize to your situation and use.

Here's the basic deal--they are acting illegally right now. First, they CANNOT have you arrested for not paying a debt. Telling you that was a violation of federal law, and you can actually sue them over it.

Also, what kind of debt is this? It makes a difference, because payday loans usually have a clause in the credit agreement that you sign that gives them permission to take money from your accounts. If you did not authorize this withdrawal, go to your bank ASAP and inform them that an unauthorized withdrawal has taken place. There are only two ways that they can legally levy your bank account--

1--if they get a judgment against you in court
2--if you gave them permission to access your account

If they didnt sue you, and you never gave them or the OC permission to take money from your account, then it is illegal. The most important thing you can do right now, if they havent sued you over the debt, is to send that DV letter out ASAP. Once they receive it, they are required by federal law to stop all collection activity, which includes any type of contact with you where they are trying to get you to pay. It also includes taking any money from your bank accounts. They cannot do anything until they provide you with validation of the debt. If they continue to try to collect, then its another violation. Those violations are worth $1000.00 each, paid to you by them, if you sue them and win in court.

Posted: Sun Apr 06, 2008 6:01 am

Here are a couple of pages that provide a good overview of Florida garnishment procedures. Nite454, you didn't mention whether you lived in Florida, so this information may not apply to you. If you want to give us some more info, we can likely be more help. Regardless, there must be a judgement in place first, before a creditor can pursue garnishment.

http://library.findlaw.com/1998/Dec/1/126478.html

http://fair-debt-collection.com/state-garnishment-laws.html#10

Birds · Posted: Tue Apr 08, 2008 10:59 am

Hayt Hayt & Landau have scheduled a court date against me. I was never served a summons. If I didn't receive summons what happens?

Posted: Tue Apr 08, 2008 11:26 am

If you did not receive a summons/civil complaint how do you know you are being sued? Did you see this through your county court docket or did they just say you are being sued?