Judgment/Garnishment Update: Duh

[treehugger1]

I posted a while back that due to other circumstances I could not make a small claims hearing. of course, I received a default judgment against me. It is not much and I can live with the 25% wage garnishment for a couple of months.

I have a habit of checking my credit reports, and sure enough, two days ago this company pulled my credit report. They do have this right as the original creditor and they hold a judgment. I actually called these folks the day after I missed the hearing and asked what their intentions were. Since we couldn't reach an agreement they said they would proceed with wage garnishment. As of tuday, there has been no garnishment writ served on my employer. I'm thinking to myself that these folks could have had the writ filled out and served on payroll in a couple of days. Instead, it appears they scan my credit report lokking for "what?" When they loaned the money to me, they d*mn well knew I had no assets.

What they saw on my credit report was many 150+ days late, and several charge-offs, and several "derrogatory but paying as agreed/partial payment plan." Who trains these folks? Additionally, the document I received from the court states that this particular small claims judgment does cannot attach any liens to personal or real property. After the judgment, I spoke with a guy on the phone and told him exactly what I expected, a writ for wage garnishment. Now, they have to wait an addtional 60 - 90 days to find any wages to garnish. By then, they could be in the garnisshment queue for 6 - 9 months.

I got called away so I'll add more here.

I bent over backwards to help these folks resolve this debt via wage garnishment in a quick manner, but yet they appear to be taking a different route that they should know will gain them nothing. I suppose they are following some precscribed "corporate policy" for collecting on an judgment. Geez...

No wonder some of the financial institutions (this one included) have been in the news.

[magyar123]

Just because you didn't get garnished when you first expected it doesn't mean that it's not in the woodworks. A process server has to go to your employer first and present the order. And after that it really becomes a payroll dept. related issue. If the payroll clerk shoves it underneath all the rest of the paperwork on his/her desk with the attitude "sooner or later", you might just get another ungarnished paycheck.

[treehugger1]

I know the garnishment will eventually come. My point was that I spoke to these folks immediately after judgment and explained very carefully that they would need to garnish wages, as there was no money in bank accounts and no equity in anything. It just seemed odd that they would run a credit report.

Then again, they might be just looking for verification of my employer, although I told them who my employer is. I guess there is always the possibility that they are worried they will have a writ served on the wrong employer and this will cost them another $80 or so (cost of writ and service on employer.)

In terms of a writ served on my employer, I do know that payroll acts on these immediately.

[GoingDown]

I know the garnishment will eventually come. My point was that I spoke to these folks immediately after judgment and explained very carefully that they would need to garnish wages, as there was no money in bank accounts and no equity in anything. It just seemed odd that they would run a credit report.

Then again, they might be just looking for verification of my employer, although I told them who my employer is. I guess there is always the possibility that they are worried they will have a writ served on the wrong employer and this will cost them another $80 or so (cost of writ and service on employer.)

In terms of a writ served on my employer, I do know that payroll acts on these immediately.

Garnishment is only one way they try to get a judgment paid. And just because you told them you were exempt except for wages doesn't mean anything to them. They don't believe what you say to them. They look on your credit report for a mortgage (so they could put a lien on your house if you have one), they look for a car payment (so they could put a lien on it if you have one with enough equity), they look for any evidence of any other assets they could possibly attach, such as a checking account, etc.

And even if your checking account is exempt--- for example, checking accounts in Arizona are exempt up to $150-- doesn't mean that they won't still make an attempt to seize it. For example, I know of someone in Arizona who had $23 in a Wells Fargo checking account in Arizona, and eventhough it was technically exempt from the judgment creditor, they still made an attempt to seize it. Guess what? Wells Fargo froze his account AND charged him a hefty fee for "responding to the garnishment." And there weren't sufficient funds to cover the fee, so they charged an insufficient funds fee in addition to that fee. Now the account is negative. The judgment creditor didn't get any money out of it, but it still cost the debtor money.

My advice? When someone has judgment against you, make sure you stop using checking accounts and savings accounts-- in fact close them-- and start using cash, money orders, and pre-paid Visa debit cards to pay for anything.

The judgment creditor will do whatever they can to get their judgment paid. Even if it violates the law. And then it would cost you money to fight it in court to prove that they violated the law.

[treehugger1]

GD, Good advice. I went to a cash, MO, prepaid visa card financial situation months ago. I just received notice of the wage garnishment from my payroll clerk. I got an official notice form payroll and I called and spoke to the clerk. I told her she should expect a few more perhaps in the next few months. She simply said, "Not a problem, we handle a lot of garnishments; child support, student loans, debts. It's no big deal. When they come in we simply put them in the queue." You have to love technology.

[ssdsco]

My advice? When someone has judgment against you, make sure you stop using checking accounts and savings accounts-- in fact close them-- and start using cash, money orders, and pre-paid Visa debit cards to pay for anything.

The problem I'm having with this advice is cashing my pension checks. My bank requires that I deposit the checks and then puts a 3 business day hold on the checks. There's no local branch for the bank that the checks are written on.
Any suggestions ?

Thanks

[treehugger1]

I'm guessing that you don't have a direct deposit for your pension checks. If they are set up for direct deposit, and you are concerned about a traditional bank acount, there are dozens of prepaid debit cards on the market that allow for direct deposit onto the card.

If you don't have a DD option, then I can't think of other options. I understand the risk of the bank holding the check for 3 days if you are a potential subject for a bank levy.

In my town, there are many local banks who will cash my paycheck. Some charge a small fee, but one charges nothing as my employer is well-established in the region.

[ssdsco]

there are dozens of prepaid debit cards on the market that allow for direct deposit onto the card.

I do have DD available. Any recomendations on the prepaid debit card ? I'm assuming I can buy money orders with the debit card for the monthly bills.

Thanks !!