the collector is HSBC/TAX.
my loan was for 500.00,she also said if i don't pay it soon(which i am trying) that after fees it will be 1600.00,
can they up it that much?
2007-05-22 06:43:03 · 8 answers · asked by justasinnersavedbygrace 3 in Business & Finance ➔ Taxes ➔ United States
There are two ways to look at this. In a court order garnishment, they are able to deduct the amount until satisfied. Another way is to have your consent and then have it deducted. The problem with the first option is because they must go obtain a legal document and then have it mandated and served, it costs the collection company money to do so. When this happens, they will tack on additional fees on top of the current debt.
In many cases as long as you are making some effrot in paying them back (even if it is a minimal amount) they cannot press forward as they are recieving funds from you.
2007-05-22 06:53:39 · answer #1 · answered by scorpio808 2 · 0⤊ 0⤋
Read your contract. $1,600 sounds excessive, but there's no question that they can get a judgement for the original amount plus attorney's fees and other costs, plus interest at the insane rate you signed up for in most states.
When they get their judgement, they can go after your paycheck in some states via garnishment. Each state has it's own rules on garnishments. In TX it can only be for child support or unpaid taxes and student loans so they couldn't touch you there.
2007-05-22 06:49:38 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
That sounds like a lot of extras, but collection fees can really add up. And yes, they can take money from your paycheck if they get a judgement. If it's money you owe and haven't paid, they'd probably be able to get a judgement in court.
2007-05-22 07:00:57 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
They will sue you in court, obtain a judgement against you and begin garnishment of your paycheck. The fees to accomplish this wil be added to your $500 debt. So, you should pay and pay on time.
2007-05-22 06:55:08 · answer #4 · answered by Anonymous · 2⤊ 0⤋
Your paycheck can be "garnished" by a creditor if they take it to court.
Creditors can also levy additional fees and penalties, depending on the details of your loan agreement.
2007-05-22 06:49:06 · answer #5 · answered by rbanzai 5 · 2⤊ 0⤋
With interest it could go up to $1600 before you know it. The collector would have to take you to court and receive judgement before they could garnish your wages.
2007-05-22 06:50:44 · answer #6 · answered by angela 6 · 1⤊ 0⤋
definately by law they c an. they can also garnish your paycheck if you dont hurry up and pay the 500 dollars
2007-05-22 06:48:39 · answer #7 · answered by Anonymous · 2⤊ 1⤋
Not without risking a major lawsuit.
2007-05-22 06:47:00 · answer #8 · answered by John C 6 · 0⤊ 4⤋