Palisades collection/bank freeze
Date: Tue, 01/15/2008 - 11:05
I am working on getting out of debt..due to mistakes of my youth, as well as being naive in my youth and allowing others to use my credit, it is a mess...the amounts I owe arent terribly large but there are alot of little ones. I didn't know where to begin in fixing it up...until now. I checked my bank account balance this morning and saw that I was overdrawn by over $3000! I was in shock, called the bank and they said that Palisades collection agency obtained legal right to freeze my account...I called Palisades and they said it is for an old att wireless account thank I vaguely remember, thought i cancelled my contract and perhaps owed $150 fee for early termination (that I foolishly ignored) but certainly not 3k! What do I do? My bank account is frozen as they thankfully I didnt have all of my money in that account so they didnt get it all but how can they obtain legal right to do that?? I am in NYC btw, if that helps...
Thanks so very much in advance for your time.
I am sorry this happened to you. I have heard of this happening
I am sorry this happened to you. I have heard of this happening before. Someone with better knowledge will be along shortly to help you with this matter.
You should also be receiving a document in the mail detailing th
You should also be receiving a document in the mail detailing the bank garnishment (seizure).
Typicaly, when a collector/firm seizes a bank account, they'll seize for double the amount owed. First step is to call Palisades @ (800)873-5648
Second, find out how much is owed
Third, try to settle with them, they won't know how much they actually got, if anything, for a while.
If they say you owe $3000, offer to settle for $1,500 or so.
Once you get an amount (you may not be able to get them to settle at a reduced amount, but at least you tried, never hurts to ask) have the collector fax a "Conditional Release Form" to your bank.
Go down to your bank and sign the release.
Within a few days, you'll have your money returned to your account (minus the agreed amount), your account will be unfrozen, and you will have taken care of one of your debts!
Two other notes; are any of the funds in your account exempt? S
Two other notes; are any of the funds in your account exempt? Social Security, Disability, Retirement, etc?
Second, you should have been receiving correspondence from this collector/firm for months. Somewhere along the line, you were sued and assumedly, got a default judgment against you. Only a court can order a garnishment (seizure). All of this requires a lot of legal documents to be served to you. If they can't find you, they will do a "substitution of service" - basicly, mailing it to you or even throwing it on your porch. (I'm not 100% sure what is considered legal substitution of service in New York)
Have you moved since you had that account? When you talk to Palisades (who may refer you to a law firm like Cohen and Slamowitz to do their dirty work) ask them what address they have on file for you.