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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Fellow 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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If you enjoyed this post, make sure you subscribe to my RSS feed!

If you enjoyed this post, make sure you subscribe to my RSS feed!

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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You 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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The Pennsylvania State Attorney General’s Office, Bureau of Consumer Protection is another resource for consumers harassed by debt collectors.  The AG’s office will not bring a private action for you, but they will take your complaint.  Please click here to read about the AG’s complaint process.

The following are links and telephone numbers to assist you:

• Consumer Complaint form  (online)
• Consumer Complaint form (printable)
• Do Not Call Complaint form
• The PA Attorney General’s Bureau of Consumer Protection Booklet (see pg 25-26)
• PA Bureau of Consumer Protection - 1-800-441-2555

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 The FDCPA is one of those interesting statutes that creates strict liability for a violation of it.  Strict liability is liability imposed without regard to fault.  Therefore, if a violation of the FDCPA is proven, the debt collector is liable.  The simplest example of this is found in a “letter violation.”  That is, when a debt collector violates the FDCPA in a writing.  It’s on paper.  There’s no denying it (unless the debt collector claims that it did not write the letter and that someone is sending out fraudulent letters using their company’s information).  The violation is there.  Debt collectors, and some courts, sometimes refer to these violations as “technical” and dismiss them as if they are not important.  I take issue with this.  They are violations.  There is strict liability.   

Congress’ intent on creating strict liability lies within the FDCPA.  Section 1692k(a) reads “any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person…”  (Emphasis added.)  Further, the sections of the FDCPA repeatedly refer to “may not use any” and “may not engage in any” which further supports Congress’ intent on making the FDCPA a strict liability statute.

(Copyright - Amy B. Good-Ashman 2008)

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