Can they really take money from your check?!?
Answer:
Assuming you don't have a signed contract that allows for wage garnishment then still technically (legally) they can. However in practice it is a little more difficult. To begin the collections agency will have to file suit against you in the area where you live. If you have moved out of state well that makes it so much more difficult. The court will fix a date for the hearing and assuming you don't show up the lender will be awarded a default judgement which leaves them free to pursue your assets. But they still can't directly garnish your wages. they will have to go back to court again in the state in which you work for a hearing to allow them to garnish your wages. All this consumes money for the lender (court fees, attorney fees and assets search fees). Of course if you decide to show up for every hearing then the creditor has to send their lawyer to cover the proceeeding. Just by filing obejctions on your own and making an appearance you can easily drive up the legal costs of collection. The point is to make it TOO EXPENSIVE for the creditor to chase after you. Most creditors already know that and generally will not chase after debtors without significant assets (house etc) with $5000 or less in debt.
Having said all this a judgement on file is a big hassle to deal with and you need to evaluate your situation and decide if it is not simply easier to negotiate with your creditor and make an effort to repay this loan. Your creditor already knows that you can make collections a drawn out and expensive process and they will probably be more than willing to renegotiate your loan.
Yes. Your wages can be garnished.
They can definitley garnish your wages if your account goes to collections. I would try to set up some kind of payment plan before that happens!
Don't let it come to that, it will ruin your credit.
I think you would have to be more that "a little" behind for that kind of action! Usually it goes through collection, I have never heard of a bill collector being able to garnish your check, it is probably a scare tactic to get you to pay. Just start paying a little a month, then they can't do anything, until you stop paying again.
It depends. You need to go back and really read whatever you signed when you opened the account. Otherwise, I think that they would have to have a garnishment before being able to go after your wages. You don't want that to happen, it will go on your credit report as a judgment, and will damage it for years.
No, their just talking and it is working LOL Stop paying them and see if they can.
Yes they can do that. It is legal because of the credit agreement, which you signed when you applied for credit there. It is one of the methods they use to protect themselves. Just be glad they don't send you to collections because that would really mess up your credit.
If this happened after you were sent to collections, then you are WAY behind, don't fool yourself. If you even make the minimum payment, they can't send you to collections.
Did you authorize them to do this by signing a voluntary wage assignment when you opened the account? If so, then the answer is yes.
If not, they have to sue you, win, get a court order and then they will be able to garnish a portion your wages.
they can absolutely do that.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: