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Creditors Garnishing Bank Accounts - Understanding Federal Benefits Exemption
Posted by: | CommentsThe 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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What Practices are Off Limits for Debt Collectors Under the FDCPA?
Posted by: | CommentsThe 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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A Frightening Look at Debt Collectors (Part 2) as reported by Dateline NBC
Posted by: | CommentsVisit msnbc.com for Breaking News, World News, and News about the Economy
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Abusive Debt Collection Tactics (Part 1) as reported by Dateline NBC
Posted by: | CommentsVisit msnbc.com for Breaking News, World News, and News about the Economy
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“Debt in America and its Collectors” on Dateline NBC on Friday, March 27 at 10PM (ET)
Posted by: | CommentsVisit msnbc.com for Breaking News, World News, and News about the Economy
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Pennsylvania Law Protects Residents From Out-of-State Collection Suits
Posted by: | CommentsA 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
Posted 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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Making a Deal With a Debt Collector After a Lawsuit is Filed Against You
Posted by: | CommentsYou have been sued by a debt collector. You have been served with a Complaint. You contact the debt collector (Plaintiff) to work out a deal. The debt collector says “pay me $X.XX today and $X.XX per month and I will make the lawsuit go away.” You make the payment and arrange for a deduction from your bank account in the requested amount per month. You assume that the lawsuit is over….
DON’T!!!
Never assume that a debt collector will withdraw or dismiss a complaint because you worked out a payment arrangement. You should always follow up with the court where the complaint was filed to see if the complaint was withdrawn or dismissed. If not, you must (even though you worked out a deal) file a response or a default judgment will be entered against you. See this post for what happens after a judgment is entered against you.
If you have been sued by a debt collector, you should contact an attorney to discuss your options. Never ignore a lawsuit that has been filed against you and never assume a debt collector will take any action for your benefit!
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Debt Collectors Joke About Violating the Law
Posted by: | CommentsWatch this video to see how funny debt collectors think it is to call your neighbors and relatives when trying to collect a debt. The debt collectors admit they do it to embarrass you. They claim it is totally legal but it is not. It is a violation of the Fair Debt Collection Practices Act for a debt collector to contact a third party regarding your debt.
If you have been the victim of abusive debt collection, please contact us.
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“I’m Going to Put a Judgment on You”
Posted by: | CommentsOften we hear reports from clients that a debt collector threatened to put a judgment against them if a debt was not immediately paid. This is a misleading statement and may be actionable under the Fair Debt Collections Practices Act and/or the corresponding Pennsylvania law protecting consumers from abusive debt collection practices.
In reality in Pennsylvania, a debt collector cannot simply place a judgment on you. They must go through the entire lawsuit process. See I’ve Been Sued By a Debt Collector in Pennsylvania for an overview of the process. Also, see General Overview of the Debt Judgment & Execution Process. Remember, you should never ignore a lawsuit that has been filed against you.
If you have had a debt collector make a threat to put a judgment on you, have been the victim of any other kind of debt collector harassment or abuse, or simply would like to discuss your debt problems, please contact us. If you are not located in Pennsylvania, you can contact us for the name of an attorney who practices in your area and/or visit the National Association of Consumer Advocates attorney referral website.
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