Can credit card companies garnish wages?

Answer 1

Why don't these people research their answers? MORONS!!! You don't have a clue what you are talking about!

I have read where a couple of states do not allow unsecured debts to be garnished, but (of course) these people never offer a source for their information. I have yet to see any proof of this.

I can certainly guarantee that most of the country allow credit card debts to be garnished. Once the creditor secures a court judgment they can garnish your wages, attach to your bank accounts, or whatever the law allows.

What really amazed me is the first four responders here say "no, they can't!". This is depressing, because it really hurts the whole concept of Yahoo Answers! You folks should be ashamed of yourselves!

The links below explain each state's collection laws.

Answer 2

A credit card company cannot just garnish you wages. What generally happens, they will try and work out a payment plan with you. If your account is more than six (6) months past due, a credit card company will generally write the accoung off as bad debt (or charge off). What happens next is, depending on the amount owed at the time of charge off, they will either send it to a collection agency or forward it to an attorney. If it goes to a collection agency, they will send you a letter in the mail asking you for payment. They will further attempt to contact you on the phone and ask for payment or make arrangements. If you still dont respond, they will generally forward it to an attorney for legal action. If the credit card company forwards your account to an attorney, what an attorney will initially do (in some cases) will call and ask if you want to make payment arrangements. If you refuse, then the attorney petitions the court. Once its in the courts hands, you will be served papers to show up for court. Once in court, the credit card companys' attorney and you will be present. The Judge asks the Plantifff what the case is about. You will have the opportunity to give your testimony. You will be given one last chance to make payment arrangements. The Judge may allow it, but, at this point, are very strict. If your payment arrange isnt accepted by the Judge and/or the Plaintiff, then garinshement is the only option left. What can they garinshe? Your payroll check (and just keep in mind, your employer has to go along with the Court order or they can get in trouble. It also makes extra paperwork for your employer), your tax refund, you bank accounts (if you have any) (if you are on an account with another individual....they can take 1/2 of the balance), to name a few. Best thing to do, if the account HAS NOT gone into collections, I would recommend that you contact your credit card company and explain your situation. Ask them if they would accept a reasonable payment. Keep in mind, the payment has to be an amount that is more than the monthly interest and at least a portion of the actual amount charged. If you simply cannot afford to make payments, I would recommend credit counseling, for which, a place like Green Path, you pay them, and they dispurse payments to ALL your creditors. Keep in mind, if you do this, you cannot CHARGE NO MORE on your accounts. The last result is bankruptcy. They are there to help you get out of debt!!! Good luck!

Answer 3

A credit card company may garnish your wages after filing for garnishment in most states. Garnishment is not allowed in Texas and Ark. Try to set up a payment schedule with the company and then stick to it.

Answer 4

A credit card company and/or collection agency cannot simply garnish your wages off of 'word-of-mouth' or 'threats' via collection calls.

What the company/collection agency can do is sue you for the monies owed, collection costs and court fees. A judgment will be issued against you and then the company has the option to garnish wages or your bank acct funds. But this is an extreme case and it doesn't happen overnight. Before it gets to this point, you will be notified about your court date and it's in your best interest to work with the creditor to set-up a payment plan.

Answer 5

Whats wrong with you people.

Studly is correct!

Giving completely false information can really hurt people seeking advice.

At the same time time, you should not trust the advice given by strangers.


Credit card companies CAN and usually WILL garnish you if a judgment is awarded.

The laws vary from state to state on how and how much.

This link will give you the procedural requirements for wage garnishment listed by state: http://www.expert-credit-advice.com/wage_garnish.htm

Answer 6

They can if they have enough parsley. Seriously, it is a BAD idea to ruin your credit rating, if you can avoid it. Credit card companies can and will do that. A lot of people have trouble with credit card payments. If you are one of them, there are avenues to help you.
Credit card companies lose money from non-paying customers all the time. It isn't really a big deal to them. But it will be a big deal to you the next time you need credit. There are services that give you your current credit report. Get yours. Your credit report is your financial reputation, and it will follow you the rest of your life. Believe me, just because the credit card company doesn't garnish your wages, you will be losing more than you think you are getting away with.

Answer 7

If you default on your payments, they can take you to court to try to force you to pay. Usually they will not, unless you owe tons of money, like hundreds and hundreds of thousands, and just send it to collections. Third party collection agencies cannot sue you, but if the credit company sells your debt, then whoever they sold it to is now first party and can sue you.

The laws in some states do allow the court to garnish your wages. The laws in my state do not permit garnishment other than family courts, child support etc. They do allow liens to be placed on real estate though. That means if you sell your home, the creditor gets paid before you get any money.

Answer 8

READ THE BOTTOM THREE ANSWERS FIRST, STARTING WITH STUDLY. Most states will allow garnishment, i think TX is only of the only ones that dose not allow it, not sure. The have to win a lawsuit to garnish the wages. It takes alto of time, money and effort for a creditor to file a lawsuit. they will now waste there time usually with 500 or less. Over 3k they most likely will, more money involved. Its a gamble!

Answer 9

Yes, credit card companies can garnish wages if you fail to make your payments and they obtain a court judgement against you.

They can also file a lien against your house, repossess your car and empty your bank accounts to satisfy a judgement.

If you have a bank account at the same bank you have a credit card they often don't even need a judgement to take money from your account to satisfy a deliquency.

Answer 10

Yes. They can sue you for money owed, get a verdict and have a judge garnish your wages if they can convince a judge that you are going to default if they don't take direct payment. However it is an extremely lengthy and costly process for both sides and they will want to avoid it, so they will very rarely do it unless the amount is extremely high or they want to set an example.