Can a collection agency do this?

[GettingBetter66]

I got a notice from a collection agency that I still owed $109.00 on a judgment they had against me.  I wrote them a personal check in that amount and put it in the mail.  In the meantime they sent garnishment paperwork to my employer.  They received my personal check on May 20th, and posted it against what they say is a bill I have in their office from 2005 (I have never heard of this bill and they have not billed me for it).  On May 31st, my paycheck was garnished for $239,00.  When I called the collection agency to ask what happened to my money (sent via check) and if they were going to refund me the additional money they had garnished from my check, the lady said that they are within their rights to apply my money wherever they want regardless of the original intent.  Please help me answer these question:  Is it okay for a collection agency to garnish more than I owe them, and is it okay for them to take money obviously sent for one debt and apply it wherever they want?

[llecs]

---

@GettingBetter66 wrote:

I got a notice from a collection agency that I still owed $109.00 on a judgment they had against me.  I wrote them a personal check in that amount and put it in the mail.  In the meantime they sent garnishment paperwork to my employer.  They received my personal check on May 20th, and posted it against what they say is a bill I have in their office from 2005 (I have never heard of this bill and they have not billed me for it).  On May 31st, my paycheck was garnished for $239,00.  When I called the collection agency to ask what happened to my money (sent via check) and if they were going to refund me the additional money they had garnished from my check, the lady said that they are within their rights to apply my money wherever they want regardless of the original intent.  Please help me answer these question:  Is it okay for a collection agency to garnish more than I owe them, and is it okay for them to take money obviously sent for one debt and apply it wherever they want?

---

I'd ask them for a breakdown of the $239. They can garnish more if the court allows it (e.g. court costs, garnishment fees, etc.), but they cannot just make it up. If they garnished for that debt, the money has to be applied to that debt as set forth in the judgment. If a payment was mailed and not specificed where it should go, then they can apply it to wherever provided the debt isn't disputed per the FDCPA. They also have to apply it to where you specify if you gave them instructions to do so.

[GettingBetter66]

I sent the notice that they sent me along with the check and they still applied it to the other alleged bill : (

[guiness56]

To play it safe, I would contact a consumer attorney and ask them.  This happened to another poster where their wages were garnished for a judgment.  The judgment was dismissed and the CA kept the money and applied it to other debts.  According to the posters attorney, this was legal.  At least in that state.  Personally, I totally disagree.

However, under the FDCPA, if you have multiple debts with a CA, they can only apply the money you send them to the debt they are told to apply it to.

[GettingBetter66]

Thank you : )  Will check into it.

[GettingBetter66]

Just an update:

NO they can not do this and I was surprised to get a check in the mail 2 days later : )  Chalk one up for the consumer!

[RobertEG]

"FDCPA 810.  Multiple Debts

If any consumer owes multiple debts and makes a single payment to any such debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumer's directions."