Can a debt collector put a hold on your Bank account for the amount owed?

Answer 1

Your question does not give enough facts. A regular debt collector cannot put a freeze on your bank account for the amount owed. However, if they have a civil judgment against you (and depending on what state you live in) they can file a garnishment against your assets, including bank accounts. The bank will hold or freeze the account until the return date of the garnishment and then send it to the Court for payment to the judgment-creditor.

As far as the comments about "junk debt" buyers. Debts are like any other asset. They may be sold or transferred. There is not a credit agreement out there that does not allow for assignments of a debt. This is a perfectly legal and well established practice. Like any other assignee they stand in the shoes of the assignor. Standard agency law.

If you owe the debt, why not pay it?

Answer 2

A frozen bank account is a sure sign that a creditor or debt collector has obtained a court judgment against you (or your joint account holder, if you have a joint bank account). A creditor or debt collector cannot freeze your bank account unless it has a judgment. Judgment creditors freeze people's bank accounts as a way of pressuring people to make payments. A judgment creditor does not have to give you specific notice before freezing your bank account. However, a creditor or debt collector is required to notify you (1) that it has filed a lawsuit against you; and (2) that it has obtained a judgment against you. If your first notice of the court case is a frozen bank account, you have not received proper notice under the law. As to the wage garnishement the answer is NO, they cannot garnish all of your wages. The maximum allowed by Federal Law is 25% of net income (gross income minus deductions.) At present four U.S. states —North Carolina, South Carolina, Texas and Pennsylvania do not allow wage garnishment at all except for debts related to taxes, child support, federally guaranteed student loans, and court-ordered fines or restitution for a crime the debtor committed. Several other states observe maximum thresholds that are lower than the 25 percent maximum provided by federal law. States may also prohibit garnishment altogether in certain circumstances. For example, in Florida the wages of a person who provides more than half the support for a child or other dependent are exempt from garnishment altogether (though this exemption is subject to waiver). Loans and negotiations with creditors can also help debtors to avoid wage garnishment. Hope this answer is of help to you LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice

Answer 3

No, and the other answer is correct. There job is to collect the full amount, at virtually any cost. They will lie, cheat and steal. You have to be especially careful of companies that buy "junk debt" from other creditors who have already written it off as a loss. These crooks are the worst, and they don't even have a legal right to collect the debt from you. To protect yourself, i would do some research. A good place to start is
http://www.HowToGooru.com/Credit-Guides.html where you can find some good free info. The recommended resource "credit secrets bible" is by far the best money I EVER spent, as the info contained gives me a HUGE advantage when dealing with creditors.
Good luck.

Answer 4

Not unless you have authorized them to do it.

Debt collectors are powerless to seize or put hold on your bank accounts, garnish your wages, and put liens on your property without first taking you to court and getting a civil judgment against you.

Never, ever give a debt collector any banking or personal information. They will empty your bank accounts and use the information against you.

Answer 5

No, they cannot; only the bank, or the government (federal or state) can freeze your bank account...but a debt collector can get a lien against you until the debt is paid.

Answer 6

Not usually. If you owe a government agency money then they can freeze your account but normally a debt collector can't.

Answer 7

Debt collectors can go to a judge and have liens placed on your property.
I see it all the time at the City Clerk's office...people with outstanding liens for not paying their whatever bill.

Answer 8

The debt collector can sue, win a judgment, then attach your bank accounts, garnish your wages, and lien your property. But they have to sue first.

Answer 9

if they get your banking information, yes that can, however, you can fight with a lawyer. Make them Validate the debt,
make them tell you whether they purchased or were assigned.
If they PURCHASED the debt, then why do you owe them
the money, you did not tell them to purchase it, you did
not sign a contract with them that said you would pay them,
how do you know what they say you owe is correct?

www.creditinfocenter.com
don' t talk to them at all, make them put it in writing.

Answer 10

Only if it's a government agency such as the IRS or a college loan fund. Other than that, if someone is threatening you with that it's just the unscrupulous tactics of over zealous collection agents. You can safely thumb your nose at those anal sphincters.