The Federal Trade Commission published an informative article discussing federal benefits in your bank account that may be exempt from garnishment by your creditors.
Click here to view the Article: Creditors Seeking Federal Benefits in Your Bank Account? Understanding Your Rights.
The Article provides informative details regarding:
- What federal benefits are ordinarily exempt from garnishment.
- How does my bank account get garnished?
- When do banks freeze accounts?
- What should I do if my bank account is frozen?
If you are facing garnishment of your bank account, or any other consumer-related issue, contact our office for a free consultation with a consumer attorney to discuss your options.
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WSBTV of Atlanta, Georgia recently ran a segment documenting the abusive collection practices of Mann Bracken. WSBTV reports that the Georgia Attorney General is currently suing Mann Bracken over alleged abusive practices.
The segment airs images of Mann Bracken’s infamous 14th floor, described as a “boiler room” which houses Mann Bracken’s abusive collection unit. The segment details the following abusive collection acts by the firm:
- A recording of a call in which a Mann Bracken collector chides a debtor for not affording the debt the same priority as a utility payment;
- Mann Braken’s refusal to heed a consumer’s protest against their collection attempts on the basis that the debt was not owed by her and where the original creditor admitted in writing that the debt was the product of fraud and was not owed by the consumer;
- Attempts to collect debts by placing harrassing telephone calls to elderly relatives;
- Threats to take the consumer’s home;
- Lawsuits against debtors on debts that are clearly time-barred.
Steve Koval, a consumer attorney, comments that Mann Bracken knowingly pursues abusive debt collection tactics because such tactics are profitable, even after accounting for the inevitable FDCPA based lawsuits filed against them.
The segment closes with a very interesting encounter with William Christopher Bracken, III, a co-founder of the firm.
The video can be viewed by clicking here.
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On April 16, 2009, a Montana jury decided to punish debt collection law firm Johnson, Rodenburg and Lauinger for violating the Fair Debt Collection Practices Act (”FDCPA”) as well as Montana’s consumer protection law, awarding $250,000 in emotional distress damages, $1,000 in statutory damages, $60,000 in punitive damages (this is the maximum amount of punitive damages permitted by Montana state law). A question remains whether the Plaintiff is entitled to even more money under Montana’s consumer protection law.
The jury rejected the debt collector’s argument that the disabled victim should only be entitled to $500 in damages. The jury found that the debt collector violated the law by suing on a debt that was barred by Montana’s statute of limitations, adding attorney fees to the debt not permitted by the original credit card contract, and by serving abusive requests for information upon the victim.
John Heenan, Esquire of Heenan Law Firm PLLC located in Billings, Montana did an incredible job of representing the Plaintiff in this case.
More details about the case can be found in the Billings Gazette by clicking here.
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The following are examples of conduct that is not permitted in the collection of debts by a debt collector:
Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:
- use threats of violence or harm;
- publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
- use obscene or profane language; or
- repeatedly use the phone to annoy someone.
False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:
- falsely claim that they are attorneys or government representatives;
- falsely claim that you have committed a crime;
- falsely represent that they operate or work for a credit reporting company;
- misrepresent the amount you owe;
- indicate that papers they send you are legal forms if they aren’t; or
- indicate that papers they send to you aren’t legal forms if they are.
Debt collectors also are prohibited from saying that:
- you will be arrested if you don’t pay your debt;
- they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
- legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.
Debt collectors may not:
- give false credit information about you to anyone, including a credit reporting company;
- send you anything that looks like an official document from a court or government agency if it isn’t; or
- use a false company name.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:
- try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
- deposit a post-dated check early;
- take or threaten to take your property unless it can be done legally; or
- contact you by postcard.
If you have been the victim of an abusive debt collector, contact us.
Source: Federal Trade Commission
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Deposition of an IC Systems, Inc. Employee
By · CommentsFellow NACA member firm Law Offices of Dean Malone, P.C. take the sworn statement (deposition) of an employee of well known debt collector I.C. Systems, Inc. According to information on their website, I.C. Systems complies with the Fair Debt Collection Practices Act:
We comply with the Fair Debt Collection Practices Act and the Code of Ethics as adopted by the American Collectors Association (ACA). We stay on top of the latest government and industry regulations so you don’t have to and we comply with all local, state and federal regulations governing collection agencies.
Thanks to Dean Malone for making this video available!
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Visit msnbc.com for Breaking News, World News, and News about the Economy
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Visit msnbc.com for Breaking News, World News, and News about the Economy
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Visit msnbc.com for Breaking News, World News, and News about the Economy
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A Pennsylvania law (42 Pa.C.S. Section 8128) makes it unlawful for a creditor (or obligee) to bring an action against a Pennsylvania resident in another state or transfer a claim to another state for the purpose of using that state’s less than favorable exemptions or wage attachment rules to collect on the claim.
Remedies for violation of this law include an injunction, a cause of action against the creditor for three times the amount recovered from the resident, and reasonable attorney fees.
If you are a Pennsylvania resident who has been sued by a creditor in another state, you should contact a lawyer to discuss your options.
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Revisiting Wage Garnishment in Pennsylvania
By · CommentsIn Pennsylvania, wages are exempt from garnishment except in the following situations:
1. For certain actions related to divorce;
2. For support;
3. For board for four weeks or less;
4. For amounts awarded to a landlord arising out of a residential lease. Note that the amount subject to attachment must have the security deposit deducted from it. Also, the sum garnished cannot be more than 10% of the net wages per pay period or a sum not to place the debtor’s income below the poverty level;
5. For items falling within the Pennsylvania Higher Education Assistance Agency Act (student loans); and
6. For restitution to crime victims, costs, fines, or bail judgments pursuant to an order in criminal proceedings.
If a debt collector has threatened to garnish your wages, you should contact an attorney.
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