Mann-Bracken
Date: Sun, 12/07/2008 - 10:54
They threatened me with a lawsuit if I didn't pay at first, so naturally, I started paying. After doing some research.. oi, I screwed up.
I've been paying 100.00/month on an SS income of 659.00/month. I have a letter ready to send stating that I'm lowering it to 50/month, but in light of what I discovered the other day... I'm not so sure I should even be paying. It would be the right thing to do, but with this outfit....
I found this on the Soc Sec website:
Question: Can creditors such as credit card, mortgage or auto loan companies garnish Social Security benefits to pay a debt?
Answer: No. If a creditor other than the federal government tries to garnish your Social Security benefits, inform them that such an action violates Section 207 of the Social Security Act (42 U.S.C. 407).
Section 207 bars garnishment of your benefits. It can also be used as a defense if your benefits are incorrectly garnished. Our responsibility for protecting benefits against garnishment, assignments and other legal processes usually ends when the beneficiary is paid. However, once paid, benefits continue to be protected under section 207 of Act as long as they are identifiable as Social Security benefits.
I live in Michigan, and I have no idea what to do in this situation. I found out they have to be licensed to collect here, if I'm not mistaken, and I can't seem where to find out if they are or not. I've checked the Michigan Attorney General's website, and there's nothing there.
So, what do I do? Pay the 50 per month, change bank accounts (since it was paid by check, another dumb mistake, must be making every mistake in the book!), and ignore everything... or just pony up the 50 and ignore everything else?
Is this payment causing you a hardship? If it were my debt and I
Is this payment causing you a hardship? If it were my debt and I was able to make payments, I would. If it's causing you a hardship, send them a reduced payment, obviously they can't take any of your wages.
The 100 was, but the 50 is much easier to manage, so I'll just g
The 100 was, but the 50 is much easier to manage, so I'll just go ahead and do that. At least they haven't harassed me about anything so far, for which I'm thankful after reading some of the stuff on this board. At least I know where to turn if they get nasty.
Thanks for your advice, Shazzers.
Sorry about the double post, but I forgot to ask... Should I
Sorry about the double post, but I forgot to ask...
Should I be concerned that they know my bank account number? I plan on paying them with money order from now on, but I'm a tad concerned about them trying to freeze my account because I'm reducing payments.
they can't legally take anything from your account without first
they can't legally take anything from your account without first taking you to court and getting a judgment first
Open a new account in a new bank and get SS to change your direc
Open a new account in a new bank and get SS to change your direct deposit. Find out how long until the deposit change takes place.
Talk to the Bank and have them stop any debits that are not done by your checks or debit card.
Send a letter to the CA and tell them that you are finding it a financial hardship and will be changing your payment amount to $50. Explain them that you are on SS and not subject to garnishment also advise them that you only want to be contacted by mail.
Send the letter certified mail, return receipt. I would do it after the deposit change has taken effect.
Thanks for the advice ndmike and cellular. I'll have to implemen
Thanks for the advice ndmike and cellular. I'll have to implement your ideas. I'm also going down to the bank this morning and see how they handle freezes and show that my income is from SS and see what they say about freezes. At the very least, I'll learn something about how all of this works.
A good site to check is bud hibbs com. This man has done resear
A good site to check is bud hibbs com. This man has done research on infamous junk debt collectors who make threats but don't do anything
If a collector threatens to sue or garnish you, they have to per
If a collector threatens to sue or garnish you, they have to permission/lincense in your state to do so. Or they have to transfer the debt to a collector in your state collectors are under certain jursidictions that allow them to go so for (fdcpa) is a good resource that tells you what collectors have and don't have the right to do.