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Established Contributor
Posts: 597
Registered: ‎10-27-2007
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My accounts were frozen. Checking and savings

A creditor/attorneys froze my bank accounts.  This is related to private student loans in excess of 32,000 dollars.  I also have fed loans and interest in excess of 200, 000 dollars.  The creditor that seized my accounts I have been paying on time and didnt miss a payment since I have been paying the city marshall and they still freezed them anyway.  My paychecks get directly deposited in these accounts.  I talked to a rep and explained the situation.  He said that they can still go after my accounts despite the fact that I have been paying them.  I am at a loss.  I am waiting to here back from the rep.  Any input would be greatly appreciated.
I would really like to purchase a new Millineum Falcon with my WAMU (oops Chase card)!!!! But first I need a decent credit limit.
Established Contributor
Posts: 597
Registered: ‎10-27-2007
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Re: My accounts were frozen. Checking and savings

Can this be moved so I can get some feedback, please.
I would really like to purchase a new Millineum Falcon with my WAMU (oops Chase card)!!!! But first I need a decent credit limit.
Contributor
Posts: 95
Registered: ‎04-19-2008
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Re: My accounts were frozen. Checking and savings

Hi,
 
Maybe some background would help? I'm still pretty new to the forums so maybe I'm missing something?  Why are you paying the city marshall for private student loans? Did your loan documents state that your accounts could be frozen in case of default? Did your repayment agreement state that as well? I've never heard of anyone but the gov't or an actual bank freezing bank accounts.
Established Contributor
Posts: 951
Registered: ‎12-04-2007
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Re: My accounts were frozen. Checking and savings

I believe that  to freeze accounts, some legal action had to occur prior.  Did the student loan people have a judgement or a lein against you?  You may have to talk to an attorney to figure out how to get them unfrozen.  Sounds like they are going to garnish you.
Frequent Contributor
Posts: 399
Registered: ‎04-30-2008
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Re: My accounts were frozen. Checking and savings

It would appear that there is a lot more to this dilemma then what is stated.

If you currently are re-paying your obligation as agreed by contract, the freezing of your checking and savings account by the same people that you have a contract with appears to be improper.

I would highly recommend that you obtain the services of an attorney as soon as possible.

Valued Contributor
Posts: 2,374
Registered: ‎03-15-2007
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Re: My accounts were frozen. Checking and savings

That, and start looking overseas.

If you were in good faith repaying and they want to ruin your life, then I think you have every right to relocate elsewhere, where you can make a living free of fear. I would never say just welch on a debt and run for the sake of avoiding repayment, but you have the right to be able to make a reasonable living.
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New Contributor
Posts: 79
Registered: ‎03-16-2008
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Re: My accounts were frozen. Checking and savings

have you cancelled your direct deposits?
Senior Contributor
Posts: 3,494
Registered: ‎05-25-2008
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Re: My accounts were frozen. Checking and savings



landocalrissian wrote:
A creditor/attorneys froze my bank accounts. This is related to private student loans in excess of 32,000 dollars. I also have fed loans and interest in excess of 200, 000 dollars. The creditor that seized my accounts I have been paying on time and didnt miss a payment since I have been paying the city marshall and they still freezed them anyway. My paychecks get directly deposited in these accounts. I talked to a rep and explained the situation. He said that they can still go after my accounts despite the fact that I have been paying them. I am at a loss. I am waiting to here back from the rep. Any input would be greatly appreciated.





For one thing, I REALLY think this thread should bumped over to "Student Loan" forums. There's a few people (LynnInMN in particular) who'd be much more versed on this issue.

Mods? Please, pretty, pretty, please?

Second of all, did you EVER default on these loans? EVER enter the rehabbing program??

AFAIK, only if you've defaulted can they freeze your accounts. That IS an option private and Fed lenders have in case of default. They can also reach directly into your paycheck. And no, they don't need to initiate legal action to do so. Student loans are a completely different animal than say, mortgage or auto loans. By law, they can durn nigh do whatever they durn well please in order to get their $$.

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Valued Contributor
Posts: 2,374
Registered: ‎03-15-2007
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Re: My accounts were frozen. Checking and savings

Incidents like this are why I recommend against student loans. As one friend of mine put it (with tongue only partially in cheek), it's better to borrow from the Mob because at least then you know where you stand.

The OP had probably gotten the same spiel most Americans get growing up: education is a ticket to a higher income, so if you have to go way into debt, it's worth the sacrifice. Well, my response is "not so fast."

There's nothing wrong with education. A college degree does look good on a resumé. Getting the degree is a fun, learning experience. But a diploma guarantees nothing in the way of earning, or receiving, income. Nothing, nada, zilch. You see, most American companies aren't interested in your education. They're more interested in who you know, how much experience you have, how well you suck up to the boss, how well you suppress any independent thought, and to what extent you can deify the Almighty Clock. That's what gets you hired, and gets you ahead: being a very dependable, obedient drone.

Again, this isn't to say you shouldn't get an education. Just remember the following points:

1) There's no law that says you MUST attend college as soon as you graduate from high school. Look it up. Nothing at all wrong with getting a job, saving your money, getting some experience under your belt, getting out on your own. You might find when you turn 20 that the field you were so gung-ho about when you were 17 and 18 really doesn't inspire the same enthusiasm, and that you actually want to do something different. Best to discover that with no money invested.

2) Nobody says you have to go directly to an expensive four-year school. Community college is a perfectly respectable way to knock out those lower-division "drudge" courses...and it costs a LOT less. True, a few snobs may look down on you...but they're not paying your tuition now, are they? Do your upper-division at the U, and if your major is truly your passion, you'll have two years as an undergrad, another 2 as a master's candidate, three years as a Ph.D. candidate, and (perhaps) umpteen years as a lecturer or professor to soak in the university experience and enjoy the ambiance of academia.

3) There's also nothing wrong with a vocational certification. Knowledge is knowledge. If you like working on engines, then by golly go to vo-tech and get certified to work on engines, even if your parents think you're "wasting your time." Bank your money, and when you turn 21 or 22 and decide engines are no longer your cup of tea, community college and the four-year schools will still be there. In the meantime, you'll have a tidy stack of money saved up so you won't have to borrow (or at least can borrow far more sparingly) from the student-loan Mob.

4) You also don't have to finish a degree in four years. Many struggling students out there go on hiatus every third semester or so to work full-time and save money. Nothing wrong with this, and most colleges and universities have a protocol you can follow to do just that.
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in a credit-scoring postnuclear Stone Age...
Regular Contributor
Posts: 243
Registered: ‎11-29-2007

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