My sister was contacted by a collection agency. They demaned payment of $200.00 immeditaly. She said she didn't have the money,nor a credit card,nor a checking account. The representive of thre collection agency said that they will then garnish her wages.She found out that the agency took out $100.00 from her check and will take out another hundred next check. Now ,when she had her wages garnished before, the collection agency set up a meeting at the courthouse and they came to an agreement on how much was going to be garnished from her check and the amout was for $2,000.00 not just $200.00. Is what the collection agency did leagle? If not what action can she take against the company. The bill was for a vist to the emergency room, and it was only 5 months old.
2006-08-21 08:00:48 · 6 answers · asked by pink hippo 1 in Business & Finance ➔ Credit
It sounds like they already went to court. Summary judgments occur sometimes when the defendant fails to appear in court on their behalf. In these cases, the judge typically rules in favor of the plaintiff as long as the terms are "reasonable."
They likely added many fees to the original balance for "legal" and 'collections" expenses. It sounds like this is a smaller law firm acting as a collections agent.
Unfortunately, this is a common approach for smaller law firms. They know that many people will fail to appear on their behalf. If your sister was never served a notice to appear in court, then she may have grounds to appeal the judge's decision. However, it is hard to win a case against lawyers. She may have little choice but to continue working until the garnishment has been completed.
2006-08-21 08:15:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The money that they are taking is not from the wage garnishment order for the $2000.00??? She has fully satisfied that?? If this is for the debt you are talking about and the garnishment is from that suit, then it probably is legal.
If this is a whole different bill that you are talking about and since you didn't say if your sister was served or not, I'm just guessing probably not.
One reason that I'm skeptical that the collection agency had 'actually' filed suit is the low amount they are claiming she owes after being sued. An ER bill and law suit fees/costs would probably be a lot more than just $200.
Have your sister go to the county court clerks office and find out if there is a judgment in her name for that debt.
If there is, ask to see the file and thoroughly read what the process server placed in the file. Look for any errors in the service, such as: served to wrong address, claim to have served but the description of who was served does not match your sister etc., etc.
Have her ask the clerk for a full and complete copy of the file.
If your sister was not properly served, she can file to have the judgment vacated and all of her funds returned.
If there is no judgment filed, immediately speak to a lawyer. Sue that collection agency for illegal wage garnishment and misrepresenting a debt. Find a lawyer that will take it on contingency.
Also, if that is the case, have your sister look on her credit reports for any violaton that the collection agency is reporting. When she files her suit, she can add those violations to it.
Check out the links I've provided.
In the first link, do some reading in the newbie forum first, then in the credit forum and other forums. You can learn what rights your sister has and how to use them.
The second link is for the National Association of Consumer Advocates (naca). Look for an attorney in your area that is versed in the FDCPA.
If you find one in your area, call and ask them if they give a free first consult (many do) Take all of the info with you, credit reports, letters from the collection agency, get a copy of the garnishment writ from the company she works for and take that, a copy of the case file (if there is one) Take everything!!!
Then if the lawyer says that her rights were violated and she does have a good case against the collection agency, ask the lawyer if he/she will take the case on contingency.
2006-08-21 16:19:07 · answer #2 · answered by echo 7 · 0⤊ 0⤋
That's how they garnish wages by going to court. The Debtor doesn't have to be there, in fact 100% of the time the Debtor is never present. They could have frozen her checking and savings accounts for the $2,000 plus attorney fees, had she had that amount on deposit. The Collection Agency checked with bank first and found the full amount was not available to be frozen so they set up the garnishee amount. The bill could have been for open heart surgery. I'm surprised the hospital didn't send collection letters and a phone call to settle for 50% .Then again, they may have and were ignored.
2006-08-21 15:20:05 · answer #3 · answered by hardtoy99 2 · 0⤊ 0⤋
No. A collection agency must first have a judgment before they can garnish wages. They either have a judgment or they broke the law.
2006-08-21 15:07:55 · answer #4 · answered by The Man 4 · 0⤊ 0⤋
they need a judgement
perhaps your sister got a court date and didn't show up
2006-08-22 02:54:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It doesn't sound like it, but unfortunately lawyers cost more than what she's lost.
2006-08-21 15:06:59 · answer #6 · answered by ? 3 · 0⤊ 0⤋