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Wage Garnishment...Advice Needed

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Anonymous
Not applicable

Wage Garnishment...Advice Needed

A week, or so, ago I received a letter from NCO financial pertaining to a debt I had with the Army & Air Force Exchange Service (AAFES) providing me with a Notice of Intent to Initiate Administrative Wage Garnishment Proceedings issued by AAFES.  I am curious to know if this is legitimate correspondence.  I have received all sorts of correspondence from Collection Companies, so I am always uncertain of the validity.  AAFES is a federal entity and there is an offset against my federal taxes, which over the last two years my small tax return has been applied.  I am curious because the letter from NCO was accompanied by what looked to be a copy of an AAFES letter on Department of Defense letterhead.

 

I contacted AAFES and they refused to speak in ref to my account and stated it was with collections and would not give me any information pertaining to the debt.  This debt is coming up on 8 or 9 years now.  I know, I know, I should of corrected it back then, but things happen.  I pretty much wrote if off after it dropped off my credit report.  Then to my surprise I get this correspondence in the mail.

 

The last thing I wanted to say, that makes me really concerned, is they have a repayment agreement attached which has my employer name, address, and payroll account number.  Please advise, what steps should I take.  Sorry for the lengthy email, just trying to put all pertinent info into the post.

Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Thanks in advance.

Thanks in advance.

Message 2 of 4
Heavanly1
Regular Contributor

Re: Thanks in advance.

A writ of attachment has to be filed with the court before the wage garnishment can be initiated. That petition should be attached on the notice of intent to garnish wages. Were you ever sued over this debt in the past?

 

Your first course of action would be to check with the courthouse(s) to see if there are any oustanding judgments against you. Secondly, contact your payroll department to determine if they have received the same paperwork. The paperwork you receive shouldn't list payment options but instead list a date that the garnishment will begin and the amount to be garnished each paycheck (which can be as high as 25% of your discretionary income). You usually are given a certain amount of time to contest the garnishment and/or discuss a financial hardship or reduced payments with the judge.

 

Additionally, you said this debt is from the 8 or 9 years ago. Is it still within the statute of limitations? If it's not within the statute of limitations and there's no outstanding judgements against you, it may be that the collection agency is using some rather aggressive scare tactics against you. If you're still uncertain, take the papers to the courthouse and ask them to explain to you the legality of the paperwork.

Message 3 of 4
Anonymous
Not applicable

Re: Thanks in advance.


@Heavanly1 wrote:

A writ of attachment has to be filed with the court before the wage garnishment can be initiated. That petition should be attached on the notice of intent to garnish wages. Were you ever sued over this debt in the past?

 

Your first course of action would be to check with the courthouse(s) to see if there are any oustanding judgments against you. Secondly, contact your payroll department to determine if they have received the same paperwork. The paperwork you receive shouldn't list payment options but instead list a date that the garnishment will begin and the amount to be garnished each paycheck (which can be as high as 25% of your discretionary income). You usually are given a certain amount of time to contest the garnishment and/or discuss a financial hardship or reduced payments with the judge.

 

Additionally, you said this debt is from the 8 or 9 years ago. Is it still within the statute of limitations? If it's not within the statute of limitations and there's no outstanding judgements against you, it may be that the collection agency is using some rather aggressive scare tactics against you. If you're still uncertain, take the papers to the courthouse and ask them to explain to you the legality of the paperwork.


 

False in almost virtually every aspect.

 

AAFES is a government agency under the Department of Defense.  As such, in many states they can use an administrative process to garnish wages that does not involve first obtaining a judgment against you in state court.  They can also, as OP has found out, easily offset against any federal tax refund due you as well as offset against certain other non-needs-based federal benefits such as social security and, obviously, salary due to employment with the federal government.  Basically, AAFES can do whatever the IRS could do to collect their money without involving the court system.

 

Further, since government collection of delinquent debt involves, for the most part, an administrative process, there is no traditional statute of limitations per se. 

 

If you work for a federal agency, having your wages garnished is pretty much a done deal.  If not, though, it is highly unlikely they will even threaten you with wage garnishment unless they can and do intend to follow through.  Generally, you do not have to be notified until after your employer is notified and by that time it is too late.

 

I would reach out to the creditor and find a way to pay / settle the debt.  Perhaps they will accept a settlement offer or let you make payments that are not too painful instead of having something forced upon you.

 

Researching the Debt Collection Improvement Act of 1996 (DCIA) may give you more background.

 

 

 

 

Message 4 of 4
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