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Overpaid Garnishment

Submitted by on Tue, 05/31/2005 - 11:39
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My husband and I incurred a medical debt to a local hospital that we were unable to pay immediately. I did not send payments for several months, and then began sending what I could, when I could ($10 or $20 here and there). The overall debt was almost $900. I had tried discussing payment arrangements with their collections department, but they wanted us to send more money than we could afford, and when I told them this, they threatened me with legal action and said there was nothing that they could do.
After I started sending sporadic payments, they sent our account to a local lawyer for collection. We paid off the debt through the lawyer, but never received balance notices or statements that told us what we owed, and if we called to inquire, they stated that they could not and would not give out that information over the phone. Instead, we had to send self-addressed, stamped envelopes requesting the information be sent to us.
As I said, we paid off the debt, and then my husband was summoned to court on the matter. The summons stated that we still owed nearly $800. What we found out was that we owed lawyer's fees, which totaled almost 100% of the debt (we had already paid some of the lawyer's fees with our payments that were sent to their office). We paid $75 for well over a year, and we still owed $800 in fees??????!!!!! We set up payment arrangements for this amount, also, but we fell about three months behind because of our financial status.
Without notice or warning (almost six months later), they began garnishing my husband's check for about 30% of his check, which came to almost $500 per month. We contacted them again, and we were told that they thought it would be about 5 or 6 drafts, but they were not sure of the exact amount of each draft. This put us way behind on our necessary bills, such as utilities, insurance, and medicine.
Four months later, the lawyer's office was still garnishing my husband's check. In all, they took over $1800 from his pay. We called them six weeks ago to inquire about this, and they then admitted (after checking on it) that the garnishment was definitely overpaid and they would stop it immediately. They were also very quick to point out that it was the Marshall's Office who was to blame for this, not the lawyer's office. They also advised that it would be at least a month before we would receive payment for the funds that were unnecessarily drafted.
Two weeks after that, we had to call them again, because the garnishment was STILL coming out of my husband's paycheck. My husband called his company's home office (as he had two weeks earlier), who informed him that they had not received anything to stop the garnishment, so by law, they had to continue to do so. My husband then contacted the lawyer's office AGAIN. Once again, they said they would have it stopped.
THIS time, we received papers about a week later that stated the garnishment had stopped. Remember, we did NOT receive any papers telling us that it would ever begin.) However, the lawyer's office said it would still be the end of the month before we could get payment. Well, it is two weeks later, the very last day of the month, the mail has run, and we HAVE NO CHECK. Is there anything we can do to get our money back? All because of absurdly astronomical lawyer's fees, we are having this very major issue.
The lawyer's office is stating that they have to get the money from the Marshall's Office first. My husband called all three of the local offices, and NONE of them show a record of us ever being drafted in the first place. I don't know what else to do, but I am really at a very frustrated and angry point right now. There has just GOT to be something, anything that we can do to get this straightened out. This simply does not seem legal or right by any sense of the word. Is there anything we can do?


Hi Charlie

Welcome to the forums. I have this suggestion to offer you. If you can apply it, I hope that it will be helpful in some case.

As per the law, you are not required to pay the creditor until at least after five days of your payday, so that you can assert an exemption or other defense. Since you have paid the creditor too soon, you can ask the court for a judgment against you for your ???actual damages.??? It will include the improperly deducted earnings as well as charges for NSF Checks and any other costs incurred because of your error. To do so, you have to show that the error made from your side was unintentional and resulted from a bona fide error. You will also be required to show that the error occurred even though you used procedures reasonably adapted to avoid that error.

Please take legal assistance regarding this matter and let us know your move.

Regards
Roxette


Submitted by roxette on Tue, 05/31/2005 - 13:01

roxette

( Posts: 4009 | Credits: )


Hi Charlie,
Welcome to the forums.

Charlie, I was saddened after going through your post. I feel that you must lodge a complaint at the FTC, as well as with the CCCS (Consumer credit counseling services).

I think they will be better equipped to help you in this matter.

All the best, Charlie, and do keep in touch.

Regards,
Peter


Submitted by peter on Wed, 06/01/2005 - 20:30

peter

( Posts: 285 | Credits: )