Collection Agencies garnish prepaid credit cards-California
So I am a California Resident that had my taxes prepared by H&R Block. I do not have any bank accounts and was offered the Emerald Card. I knew that part of my Federal refund was to be applied for an 'Off-Set', and the remaing refund amount was applied to the Emerald Card. As for my State I was aware that it was to be garnished for EDD.
My question is: In the State of California can Collection agencies garnish/seize funds on my Emerald Card? Keep in mind that this is a pre-paid Mastercard, and that bc it was issued by H&R Block (originally for tax refund) my SSN is linked with this card.
I would like to load funds on the card so that I can pay bills a little easier and so fourth. But as you can imagine, I am very hesitant for fear that the few collection agencies I receive mail from will garnish any funds I load onto my Emerald Card.
Thank you kindly for your time and help!
Do you have more than one debt being offset?? Your student loan
Do you have more than one debt being offset?? Your student loan is going to offset both your state and federal returns until the debt is paid in full.
I have no student loans. The federal refund was garnished due to
I have no student loans. The federal refund was garnished due to back taxes from 2008. My concern is, Can Collection Agencies, ie. Asset Acceptance LLC., can garnish funds that are loaded on a prepaid credit card? I am California Resident, that makes a difference whether if CA's CAN or CAN NOT garnish those preloaded funds.
From what I can gather after some research is that there technically 2 different types of prepaid credit cards. As I menitoned I received the Emerald Card through H&R Block. But from I keep reading the 2 different types of prepaid CC's are: 1) secured and these are the cards that are linked to a Bank of the issuer. H&R Block uses their H&R Block Bank to complete direct deposits, re-loads, and transfers. So they have my SSN on file and the card does have a routing and 'checking' acct #. So with these secured prepaid CC's collection agencies can and will garnish funds that are on these types of cards.
The second type of prepaid CC is one that is considered unsecure. Meaning that its basically like a reloadable gift card, and the card doesn't have a routing or 'checking' account #. With this being said CA's supposedly can't garnish funds from this type of prepaid CC. But what I also gather is that it makes a difference whther the CA has a judgement on the debt they're attempting to collect or not. And that only reason that CA's can't garnish funds from an unsecured type of prepaid CC is simply bc there is less chance that they'll find out about the card bc lack of paper trail.
Soooo.....
Being a California resident who has a few collection agencies offering 'settlements', but NO collection agencies that have a 'judgement' on any of my debts; and I have no student loans, NO balances due to the IRS-can CA's garnish funds from prepaid CC? And is it true that there technically 2 different types of PPCC's?
I am so grateful for your help!
My debts are from 2 credit cards, one medical bill, and one cell
My debts are from 2 credit cards, one medical bill, and one cellular company. All 4 debts are now with CA's and none of them have a 'judgement', they're just attempting settlement. I hope this helps to better understand.
Thank you so much for your time!
They can't "garnish" the funds loaded onto the card. However, w
They can't "garnish" the funds loaded onto the card. However, with offsets, they simply take it before it would have been loaded.