Collection Agency garnishing wages

[Anonymous]

Hello everyone, I need some help a friend of mine stated that an old car loan she had over 7 years ago has turned her account over to a collection agency. The collection agency is garnishing her wages. My question is does the collection agency have a right to collect if the original debt is well beyond 7 years from the date of first delinquency? What can she do? If anything.

Thank you, I appreciate your help.

[RobertEG]

The credit report exclusion period for a collections is based on FCRA 605(a)(4), as clarified by section 605(c), and applies only to continued showing of a collection in your credit report.  It is separate from the period within which they must file for a judgment, or the ability after obtaining a judgment for them to additionally file for and obtain an order of garnishment.

If the debt collector is already garnishing wages, they have both obtained a judgment and additionally filed for and obtained an order of garnishment.  Filing for a judgment is separately required within the statute of limitations period for your individual state.  It is presumed that they filed for their judgment within the SOL.

After obtaining a judgment, they can additionally motion the court for an order of garnishment at any time within which the judgment remains in effect.  The period of enforceability of a judgment is usually ten years, so yes, they can usually obtain an order of garnishment long after expiration of the credit report exclusion period under the FCRA.

If you question whether they have obtained a valid judgment or an order of garnishment, you should consult an attorney for review and opinion as to whether each was/is valid.