Can debt collectors garnish your check?

[Joemonkey]

And remember, they don't profit off of court costs, those just get passed down to the debtor. However all the paralegal work hours and collector work hours involved in generating the court documents, filing fees, etc. try to get offset by the interest. Remember, if the debtor declares bankruptcy they get nothing. You can also try to call the debt collection agency and come to a settlement agreement, you'd be amazed how much your interest rate or debt itself can be reduced by a sincere phone call.

 

[jlbenedict]

Originally posted by: elwood
I'd like to know how much they bought this account for and how much profit they stand to make.

If its close to SOL.. then at the most 3 cents on the dollar.

The collection industry is in the $billions of dollars of year industry..

the big players such as NCO have so much bank, they can afford to pay the FTC in fines of millions..

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

 

[yuppiejr]

Originally posted by: elwood
I'd like to know how much they bought this account for and how much profit they stand to make.

Doesn't matter, she obviously knew she incurred the original debit and hasn't taken the time to pay it which has cost the credit card company money which conveniently they pass on to the rest of us. This wouldn't be a problem if she's handled her financial affairs responsibly and now she's paying the price - even if it's 4x what she originally owed. I hope the $900 in Coach purses and trips to Express were worth a lifetime of bad credit... Good luck buying a house if you two ever decide to go down that road.

Yikes.

 

[Homerboy]

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

keep burning them at the stake.

 

[jlbenedict]

Originally posted by: Homerboy

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

keep burning them at the stake.

Is that your company's motto?

 

[Joemonkey]

Originally posted by: jlbenedict

Originally posted by: Homerboy

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

keep burning them at the stake.

Is that your company's motto?

Isn't it every for profit company's motto about their customers?

 

[Homerboy]

Is that your company's motto?

not even close. You certainly has some gross assumption on how ALL the collection industry works dont you? Certainly seem to have a strong disposition on it.

 

[imported_elwood]

Originally posted by: jlbenedict

Originally posted by: elwood
I'd like to know how much they bought this account for and how much profit they stand to make.

If its close to SOL.. then at the most 3 cents on the dollar.

The collection industry is in the $billions of dollars of year industry..

the big players such as NCO have so much bank, they can afford to pay the FTC in fines of millions..

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

It was about 4-5yrs AFTER SoL.

 

[jlbenedict]

Originally posted by: Homerboy

Is that your company's motto?

not even close. You certainly has some gross assumption on how ALL the collection industry works dont you? Certainly seem to have a strong disposition on it.

naah.. not all of the industry as a whole..

i'm sure there are a few companies that abide by the laws, rules and regulations that govern them..

again.. key word being a "few"

 

[slsmnaz]

Originally posted by: jlbenedict

Originally posted by: elwood
I'd like to know how much they bought this account for and how much profit they stand to make.

If its close to SOL.. then at the most 3 cents on the dollar.

The collection industry is in the $billions of dollars of year industry..

the big players such as NCO have so much bank, they can afford to pay the FTC in fines of millions..

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

No blame on the people living way beyond their means? Amazing...

 

[Homerboy]

It was about 4-5yrs AFTER SoL.

uhh.....

 

[daveymark]

creditnet > collection agencies.

I love showing everyone I know how to get scum creditors off their back. a few letters is usually all it takes to absolve the alledged debt.

 

[jlbenedict]

Originally posted by: elwood

Originally posted by: jlbenedict

Originally posted by: elwood
I'd like to know how much they bought this account for and how much profit they stand to make.

If its close to SOL.. then at the most 3 cents on the dollar.

The collection industry is in the $billions of dollars of year industry..

the big players such as NCO have so much bank, they can afford to pay the FTC in fines of millions..

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

It was about 4-5yrs AFTER SoL.

But.. your GF was not proactive about the situation and got bit in the @$$ about it.

Also your GF made an agreement to repay them for 90 payments at a certain amount..

You did say she had paperwork about this right?

Some states that may be considered as a "promisary note" and then again, this would be a NEW agreement

Your GF is SOL.. and not the "statute of limitations" kind of SOL

 

[jlbenedict]

Originally posted by: slsmnaz

Originally posted by: jlbenedict

Originally posted by: elwood
I'd like to know how much they bought this account for and how much profit they stand to make.

If its close to SOL.. then at the most 3 cents on the dollar.

The collection industry is in the $billions of dollars of year industry..

the big players such as NCO have so much bank, they can afford to pay the FTC in fines of millions..

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

No blame on the people living way beyond their means? Amazing...

Generalizing that everyone that has some debt and credit problems lives beyond their means?

 

[Homerboy]

Originally posted by: jlbenedict

Originally posted by: slsmnaz

Originally posted by: jlbenedict

Originally posted by: elwood
I'd like to know how much they bought this account for and how much profit they stand to make.

If its close to SOL.. then at the most 3 cents on the dollar.

The collection industry is in the $billions of dollars of year industry..

the big players such as NCO have so much bank, they can afford to pay the FTC in fines of millions..

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

No blame on the people living way beyond their means? Amazing...

Generalizing that everyone that has some debt and credit problems lives beyond their means?

Then your post should have said "....non paying customers"

 

[slsmnaz]

Originally posted by: jlbenedict

Originally posted by: slsmnaz

Originally posted by: jlbenedict

Originally posted by: elwood
I'd like to know how much they bought this account for and how much profit they stand to make.

If its close to SOL.. then at the most 3 cents on the dollar.

The collection industry is in the $billions of dollars of year industry..

the big players such as NCO have so much bank, they can afford to pay the FTC in fines of millions..

So.. there is alot of profit to be gain of persuading, harrassing and extorting consumers.

No blame on the people living way beyond their means? Amazing...

Generalizing that everyone that has some debt and credit problems lives beyond their means?

Not really but if they ignore repeated attempts to collect a debt then there is something wrong. Many companies will deal with them if they just make an effort to communicate their problems.

The reason these companies exist is because most people in the US are idiots with money. They see a CC credit limit as an extension of their income.

 

[jpeyton]

Originally posted by: daveymark
creditnet > collection agencies.

I love showing everyone I know how to get scum creditors off their back. a few letters is usually all it takes to absolve the alledged debt.

CreditBoards also has good advice about getting these scumbags off your back.

 

[CptObvious]

A couple observations from limited personal experience in consumer law...usually it's the interest and late fees that make up the bulk of the amount. The collection agencies hire new attorneys or high volume solo practitioners to represent them, since these cases aren't that complex and the court documents are largely just forms that you plug names and numbers into. So lawyer fees and court courts may be about a grand, less than most cases.

If you enter into a payment plan with the lawyer after being sued, the lawyer will usually have you sign a settlement agreement where you agree to a final judgment if you default. This gives the collection agency a fast track to garnishing your wages or attaching your property if you're late on your payments.

Collection agencies are very willing to settle if it appears the debtor is eligible for bankruptcy. Last year I defended a girl who had a CC debt of $700 that ballooned to about $3500 with the interest, but she had very little income and no assets. The collection agency lawyer was on the other side of the state and really did not want to travel 3+ hours for trial, and I mentioned to him that she might be headed for bankruptcy (in which case the collection agency would recover nothing), so we were able to get the case settled for $300.

 

[tk149]

Originally posted by: elwood

Originally posted by: tk149
Have her contact the attorneys and work out a new payment plan. Usually, you can negotiate a lower total amount, especially if you increase the monthly payment size. Nobody wants to wait 9 years to get back their money.

It's too late to call and work out a payment plan. He already filed to have her wages garnished, it's just awaiting the judges review.

P.S. Wait for what money back? These "Scavenger debt collectors" buy these accounts for pennies on the dollar and then tack on their interests and attorney fee's.

Read about it yourself. It is exactly what they are doing to her.

If the judge hasn't banged his gavel, it's not too late. Filing for judgment is not the same as having a judgment. If you can cut a deal with the creditor, then they can withdraw the filing.

I'm simply saying that the creditor would rather have $50 up front than wait 9 years for $500. Your girlfriend's payback history is already shoddy. How do they know she'll stay employed? If she switches jobs, they'll have to track her down again, and file for another wage garnishment, which will cost them even more money.

It would only take a phone call to find out if she can save several thousand dollars.

I know about the industry. I worked in one part of it.

 

[Homerboy]

If the judge hasn't banged his gavel, it's not too late. Filing for judgment is not the same as having a judgment. If you can cut a deal with the creditor, then they can withdraw the filing.

I'm simply saying that the creditor would rather have $50 up front than wait 9 years for $500. Your girlfriend's payback history is already shoddy. How do they know she'll stay employed? If she switches jobs, they'll have to track her down again, and file for another wage garnishment, which will cost them even more money.

It would only take a phone call to find out if she can save several thousand dollars.

I know about the industry. I worked in one part of it.

great post and spot on.
Call and work out a payment plan. They may still go through with the judgment at this point though as they would have to then incur the court fees associated with the submission and it would be worth their effort to have the judgment to hold over her for payment plans/garnishments.

 

[imported_elwood]

Originally posted by: tk149

Originally posted by: elwood

Originally posted by: tk149
Have her contact the attorneys and work out a new payment plan. Usually, you can negotiate a lower total amount, especially if you increase the monthly payment size. Nobody wants to wait 9 years to get back their money.

It's too late to call and work out a payment plan. He already filed to have her wages garnished, it's just awaiting the judges review.

P.S. Wait for what money back? These "Scavenger debt collectors" buy these accounts for pennies on the dollar and then tack on their interests and attorney fee's.

Read about it yourself. It is exactly what they are doing to her.

If the judge hasn't banged his gavel, it's not too late. Filing for judgment is not the same as having a judgment. If you can cut a deal with the creditor, then they can withdraw the filing.

I'm simply saying that the creditor would rather have $50 up front than wait 9 years for $500. Your girlfriend's payback history is already shoddy. How do they know she'll stay employed? If she switches jobs, they'll have to track her down again, and file for another wage garnishment, which will cost them even more money.

It would only take a phone call to find out if she can save several thousand dollars.

I know about the industry. I worked in one part of it.

She called and tried talking to them about it. It was the first thing she did. They didnt want to hear any of it.