topic Re: Laws on bank account levies? in General Credit Topics

Laws on bank account levies?

Anonymous — Tue, 20 Apr 2010 21:28:50 GMT

THIS IS NOT TAXED BASED

Anyone know what the laws are on these?

I had a court ordered levy put on my account from a debt collector. From what I have read they can take every penny out of your account. Thing is, they OVERDREW my account to pay for the full amount of the levy as to satisfy their legal obligation.

I just recently got the money back from the agency that wanted the levy initially (long story-- they messed up).

Well the bank decided to send my OVERDRAWN account to a collection agency in the meantime. I sure wasn't going to pay MORE money that I didn't owe in the first place!!!

Since I was awarded the money BACK I planned on paying them therefore starting from square one.

NOW this OVERDRAWN amount is much greater than the original amount due to fees and interest.

Point is, I didn't think they were lawfully allowed to take more than what was in my account !!! What a bunch of BS !!!

Any help???

Re: Laws on bank account levies?

Anonymous — Tue, 20 Apr 2010 22:13:34 GMT

Those types of laws are governed by the state you are in.

Again, look up the laws in your state for this.

I do know in my state, if they have a court order, they can take the full amount of that order. It does not matter what is in your bank.

Re: Laws on bank account levies?

RobertEG — Wed, 21 Apr 2010 04:49:06 GMT

You must have had a court ordered judgment for them to garnish any assets.

The court speciied what they were authorized to collect, and when, in their judgment.. A set monthly amount? Payment in full?

If what they did is within the bounds of the judgment, then there is probably little you can do. But if it exceeded their authority under the judgment, then it is time for you to secure legal counsel.

Re: Laws on bank account levies?

Anonymous — Wed, 21 Apr 2010 05:53:01 GMT

@Anonymous wrote:
Those types of laws are governed by the state you are in.

Again, look up the laws in your state for this.

I do know in my state, if they have a court order, they can take the full amount of that order. It does not matter what is in your bank.

Unless you have an overdraft line of credit, I know of no state that allows a creditor to levy more from your account than what it contains.

Re: Laws on bank account levies?

Anonymous — Wed, 21 Apr 2010 05:56:03 GMT

@Anonymous wrote:
THIS IS NOT TAXED BASED

Anyone know what the laws are on these?

I had a court ordered levy put on my account from a debt collector. From what I have read they can take every penny out of your account. Thing is, they OVERDREW my account to pay for the full amount of the levy as to satisfy their legal obligation.

I just recently got the money back from the agency that wanted the levy initially (long story-- they messed up).

Well the bank decided to send my OVERDRAWN account to a collection agency in the meantime. I sure wasn't going to pay MORE money that I didn't owe in the first place!!!
Since I was awarded the money BACK I planned on paying them therefore starting from square one.

NOW this OVERDRAWN amount is much greater than the original amount due to fees and interest.

Point is, I didn't think they were lawfully allowed to take more than what was in my account !!! What a bunch of BS !!!

Any help???

Unless you had an overdraft line of credit, the levy should not have been able to obtain more than the account balance. What may have happened is that your account was overdrawn in the amount of bank fees. Most banks have a fee for accepting a levy on an account plus they can charge attorney fees if they have to involve an attorney (even their own) to handle the levy when the bank is served.

Re: Laws on bank account levies?

RobertEG — Wed, 21 Apr 2010 06:00:52 GMT

So, it all comes back around to what your court-ordered judgment decreed on collection of the debt.

What did it say?

Re: Laws on bank account levies?

Anonymous — Wed, 21 Apr 2010 16:38:18 GMT

@Anonymous wrote:
@Anonymous wrote:
Those types of laws are governed by the state you are in.

Again, look up the laws in your state for this.

I do know in my state, if they have a court order, they can take the full amount of that order. It does not matter what is in your bank.
Unless you have an overdraft line of credit, I know of no state that allows a creditor to levy more from your account than what it contains.
Check WA laws. They do allow it.

Re: Laws on bank account levies?

Anonymous — Thu, 22 Apr 2010 00:06:09 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Those types of laws are governed by the state you are in.

Again, look up the laws in your state for this.

I do know in my state, if they have a court order, they can take the full amount of that order. It does not matter what is in your bank.
Unless you have an overdraft line of credit, I know of no state that allows a creditor to levy more from your account than what it contains.
Check WA laws. They do allow it.

They do not. The RCW is clear on this.

In Washington the levy amount may exceed the amount actually in your account(s), but the bank cannot cause you to go into debt (i.e. give the judgment creditor more than is in your account).

What you may find is that if you have, say, a $500 levy against an account that contains, for example, $300 your account has a negative balance of $400 and you owe the bank $100. This $100 was not returned as part of the actual levy amount, but rather part of the various fees that the bank charges when they receive legal process related to your accounts. Check the account terms and conditions as the overwhelming majority will specify certain fees such as legal fees, receipt of process fees and account review fees that apply when the bank is served on your behalf.

Another possibility where you owe the bank more than the actual amount levied is where you have a loan with the bank that contains an acceleration clause. Many acceleration clauses specify the full amount of the note is due and payable upon certain events -- such as attachment or levy of any account you hold in the bank. Again, this money is not given to whomever serves the levy, but rather is a debt you have otherwise incurred with the bank.

By law in Washington only deposits, accounts, credits (this does not mean credit limits), other personal property and wages / compensation due (by the bank -- i.e. you are a bank employee) are able to be attached.

Re: Laws on bank account levies?

Anonymous — Thu, 22 Apr 2010 01:05:48 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Those types of laws are governed by the state you are in.

Again, look up the laws in your state for this.

I do know in my state, if they have a court order, they can take the full amount of that order. It does not matter what is in your bank.
Unless you have an overdraft line of credit, I know of no state that allows a creditor to levy more from your account than what it contains.
Check WA laws. They do allow it.

They do not. The RCW is clear on this.

In Washington the levy amount may exceed the amount actually in your account(s), but the bank cannot cause you to go into debt (i.e. give the judgment creditor more than is in your account).

What you may find is that if you have, say, a $500 levy against an account that contains, for example, $300 your account has a negative balance of $400 and you owe the bank $100. This $100 was not returned as part of the actual levy amount, but rather part of the various fees that the bank charges when they receive legal process related to your accounts. Check the account terms and conditions as the overwhelming majority will specify certain fees such as legal fees, receipt of process fees and account review fees that apply when the bank is served on your behalf.

Another possibility where you owe the bank more than the actual amount levied is where you have a loan with the bank that contains an acceleration clause. Many acceleration clauses specify the full amount of the note is due and payable upon certain events -- such as attachment or levy of any account you hold in the bank. Again, this money is not given to whomever serves the levy, but rather is a debt you have otherwise incurred with the bank.

By law in Washington only deposits, accounts, credits (this does not mean credit limits), other personal property and wages / compensation due (by the bank -- i.e. you are a bank employee) are able to be attached.

Whether they are supposed to or not they do allow it. My sister was overdrawn by them taking the entire judgment amount from her bank account and she had nowhere near that in her account. The bank told her it was legal.

Re: Laws on bank account levies?

Anonymous — Thu, 22 Apr 2010 01:12:12 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Those types of laws are governed by the state you are in.

Again, look up the laws in your state for this.

I do know in my state, if they have a court order, they can take the full amount of that order. It does not matter what is in your bank.
Unless you have an overdraft line of credit, I know of no state that allows a creditor to levy more from your account than what it contains.
Check WA laws. They do allow it.

They do not. The RCW is clear on this.

In Washington the levy amount may exceed the amount actually in your account(s), but the bank cannot cause you to go into debt (i.e. give the judgment creditor more than is in your account).

What you may find is that if you have, say, a $500 levy against an account that contains, for example, $300 your account has a negative balance of $400 and you owe the bank $100. This $100 was not returned as part of the actual levy amount, but rather part of the various fees that the bank charges when they receive legal process related to your accounts. Check the account terms and conditions as the overwhelming majority will specify certain fees such as legal fees, receipt of process fees and account review fees that apply when the bank is served on your behalf.

Another possibility where you owe the bank more than the actual amount levied is where you have a loan with the bank that contains an acceleration clause. Many acceleration clauses specify the full amount of the note is due and payable upon certain events -- such as attachment or levy of any account you hold in the bank. Again, this money is not given to whomever serves the levy, but rather is a debt you have otherwise incurred with the bank.

By law in Washington only deposits, accounts, credits (this does not mean credit limits), other personal property and wages / compensation due (by the bank -- i.e. you are a bank employee) are able to be attached.

Whether they are supposed to or not they do allow it. My sister was overdrawn by them taking the entire judgment amount from her bank account and she had nowhere near that in her account. The bank told her it was legal.

You are confusing an overdraft caused by legitimate bank fees for processing a garnishment / levy with the amounts turned over to the creditor as a result of the garnishment / levy itself.

Re: Laws on bank account levies?

Anonymous — Thu, 22 Apr 2010 01:31:45 GMT

No I am not confusing anything. I am sorry, I know you are an attorney but, I was there, I saw it.

We even told them they couldn't take the entire amount at one time and they said they could. They showed her the paperwork and the amount of the judgment/levy.

ALL of it was taken from her account.

Re: Laws on bank account levies?

Anonymous — Thu, 22 Apr 2010 01:44:57 GMT

@Anonymous wrote:
No I am not confusing anything. I am sorry, I know you are an attorney but, I was there, I saw it.

We even told them they couldn't take the entire amount at one time and they said they could. They showed her the paperwork and the amount of the judgment/levy.
ALL of it was taken from her account.

RCW is clear. It is not possible. It is not possible in any state.

Either there are facts in the case which you were not aware of or you were misinformed by the bank. Appellate courts across the nation would have a field day with the constitutional issues involved in making a bank take a financial hit for the civil liabilities of a customer.

The bottom line anywhere in the U.S. is that a creditor cannot obtain by levy / garnishment more money than what is in your bank accounts, bank deposits credits (this does not mean credit limits), other personal property and wages / compensation due (by the bank -- i.e. you are a bank employee) are able to be attached.

Anything over and above this amount was what the bank itself charged you in various banking fees for being served process and compliance.

Re: Laws on bank account levies?

Anonymous — Wed, 20 Jun 2012 21:23:11 GMT

When I was facing a bank levy a few months ago I took all my money out of the account, closed the account and now have all my money on a cash card that they can not touch. Banks are going to crash anyway. They wont get my money, and GOD BLESS TEXAS creditors cant garnish wages here. Only for taxes, child support and Student loans. You have to beat them at their own game hide your money and they cant get it.

Re: Laws on bank account levies?

marty56 — Wed, 20 Jun 2012 21:53:49 GMT

@Anonymous wrote:
When I was facing a bank levy a few months ago I took all my money out of the account, closed the account and now have all my money on a cash card that they can not touch. Banks are going to crash anyway. They wont get my money, and GOD BLESS TEXAS creditors cant garnish wages here. Only for taxes, child support and Student loans. You have to beat them at their own game hide your money and they cant get it.

+1 We also have homestead exemption to protect our home.

Welcome to the forum.