My daughter and her ex-husband incurred some debts, and the collection agency is coming after her to pay. The collection agency (i.e., CA) went to court and got a judgement against her -- including a wage garnishment.
First of all, she never had her day in court because they served her ex (who never told her). Secondly and more importantly, they had the marshall serve a wage garnishment to her employer. She immediately went to court and got the garnishment reduced from $358 per pay period to $25 a pay period. The employer garnished the wages anyway and sent $716 DIRECTLY to the CA -- despite the fact that the garnishment notice clearly states in 7 places that the money is to be sent to the marshall's office.
Her employer merely says, "too bad" -- she'll have to get it back from the CA. The CA laughed. Since the CA hasn't informed the marshall's office that the employer sent the money directly to them, the marshall's office assumes nothing has been paid so it becomes a $1432 loss. The Board of Equalization says they don't want to get involved.
The CA also tacked on location fees, processing fees, handling fees, collection fees and now boosted the debt into the stratosphere. How many of these so-called fees can they tack on? What's legit and what isn't? How can my daughter straighten out this mess?
JZAUBER: Have your daughter contact the FTC in
Wash, DC . They have a toll-free number and will
advise her of what rights she has in dealing
with collection agencies.Tell her to trace
her employer's check and send proof to courts
and marshalls offices. Next she could contact
her state's consumer protection office for
further suggestions. Good luck...
RobertGrunnah: I would suggest that your daughter and her husband quickly move to the Cayman Islands, free of the over-burdening U.S. long arm of the law which allows certain states to garnish wages. They might as well re-institute debtor prisons. At least in Texas, they can't garnish wages. Does your daughter wear Cowboy boots?
Nesron: I would check with a lawyer. There are very specific rights everyone has. I have had problems with collection agencies as well. I have read quite a bit about what they can and can not do. I would think that what they have done is illegal. If it can be proven, they will owe her damages. The boss is also in hot water if it turns out what happened is not legal in the state in question.
Suzzanne: I agree with Nesron: you need to ask a lawyer. Many of them have free first consultations (or will take a meeting for around $25-$30). You can do that a couple of times and learn a lot each time, just dealing with each personality and explaining the problem.
Unfortunately, I was a licensed bill collector for 3 years -- the worst job in the world to have BUT you learn a lot. Now I use it to defend myself against THEM and advise others on how to do the same.
Consumer Affairs is nice but you have to determine who was at fault here. "...with the ex-husband..." Well, seems she was married at the time of the debts, so that is correct. The wage garnishment? That's correct too (apparently he doesn't have a job or they can't find a way to attach it), but the court DID reduce the amount of the payments for the reasons stated. "CA" is not at fault until the debt is totally paid, regardless of the installment amounts.
The fault is with THE EMPLOYER. They paid the wrong person? She needs to submit POP (proof of payment) to "CA" and they should then credit the account. If not, get their reasons in writing. That would not repay the extra charges and as it stands, she's still liable for that.
When she obtained the reduction from the court, what was the date? If it preceded the garnishment, and the employer HAD KNOWLEDGE, then the employer is liable for ALL DAMAGES that occurred due to their "oversight" plus more damages (the extra charges, plus more damages for pain and suffering, etc.).
PLEASE consult a lawyer about this and go after that employer before it's too late. Take it to small claims court if you can't face the prospect of contracting an attorney. The limit there is $5,000 but you will have to accept that lower court's decision. Judges try to be fair. but they are not all as nice as Judge Wapner! Just spell out the dollar amounts as you see them, and fill in the rest (up to $5,000) for duress, pain or suffering or stress, etc. It costs $50 to file and accompany it with the paperwork, notarize as much as possible. The judge will explain the rest, but you'll get some justice.
scottwagner: Loan your daughter the money or co-sign on a loan so that she can pay off the debt. If she would have paid her debts in the first place, she wouldn't be having all these problems. The collection agency is just doing their job.
doug38: First. follow Suzzanne's advice and go after your the employer. After it's over, tell him "Too Bad."
However, if that fails file backruptcy.
paulgowder: I would advise suing the marshal's office, the employer, the CA, the ex (who never told your daughter about the papers being served), and anybody eles involved. While the suits man not stand up in court, just the threat may well bring them around.
delmonteM: In this matter I agree with Suzanne. Once the money reaches the collection agency, they are under no obligation to repay if it is payment on a debt. In the future, the name of the game is keeping the money out of their reach. I'm not going to ask who the bill was to (because that would violate your anonymity), but if it is like a phone bill or credit card bill (or anything except loan car or rent) you can simply keep the company at bay by sending in $2 to $4 (depending on the state) a month and calling it payment. As for now, your recourse is with your employer for not checking with you before garnishing your wages. First call the state labor board and make a complaint, and then if they don't take the case go to small claims court. And GOOD LUCK -- I hope you get these vermin.
FstCapital: Make sure when contacting the CA you talk to the one in charge. The owner may see things your way and send your pay back, minus the proper deduction. The collector has a job to do and may see things differently than the owner. The best of luck to you and your family.
trevlix: In regards to what paulgowder said: I agree with some of it, but as far as suing the ex -- that may not be possible. In some states the ex may be notified about the debt and not have to tell their ex-spouse. I used to work in a coolection agency so i know all about this.
Fvalive: Obviously, check with a lawyer first. Each state has very different laws about judgements and garnishments. As I see it (and I'm not a lawyer but I have managed a loan office and oversaw collections):
1) It was the daughter's responsibility to give her creditors her new address and monitor the status of her account (it was probably pretty far behind since most courts take a long time to process a judgement and wage garnishment).
2) Was this a joint debt and the daughter just didn't followup on the account because the divorce agreement said "ex" was supposed to pay these payments? If so, the contract between the daughter, ex, and creditor happened first and takes precedence. The divorce agreement was between the daughter and the ex, the creditor was not involved and is not obligated to release her from her responsibility to repay the debt (at least in NJ). She may have to sue her ex to reimburse her for the $ she is paying the CA.
3) If she wasn't informed of the court hearing, she probably found out about the garnishment when her check was short -- any $ deducted before she appeared in court (and reduced in the garnish amount) she probably won't get back.
The moral to this story: Don't ever sign on any account with someone else unless you are ready, willing, and able to pay that bill in full on your own... (I've even seen kids sticking parents with the bills...)
Suzzanne: I just want to add something to two of the options given here, because it IS TOO LATE for them to apply to this case:
1) Even one dollar will update a collection account for another 4 years. That is the statute of limitations on most accounts: they can only SUE YOU for the money (attach wages, etc.) up to 4 years from the date of service. That is not the same as remaining on your credit record (7-10 years). By then the accounts usually just drop off.
2) Interest: When an agency collects interest first, then the principal you can't get out of it, i.e., IRS, AFDC (gov't agencies). If not, they have to clear your account from the credit record in spite of any interest remaining. It's the law and it's all profit for them if they are able to convince you to do so. Get it in writing if they refuse to clear your account after you've paid the principal. It could mean hundreds of dollars.
3) Bankruptcy is advisable at the time of the divorce to include all joint accounts. If it's not done, she'll be liable for all remaining debts in both of their names but they may not be able to catch up with her so she won't have to worry about them. This may not be the only account she had with the ex-husband. Check into it as soon as possible. She's liable for suit ONLY for up to 4 years. Bankruptcy has to be justified before a judge ruins your credit for 10 years -- and for small amounts, it should not be done. Obviously the EX could care less about their credit.
