Garnishment question

[llecs]

I've got a question for you guys. I'm an employer and received a phone call from "651-221-0566" listed as "EDU CREDIT MGMT" on the caller ID here at the office. The person on the other end initially was nice and said he needed to verify employment for an employee of ours. It seemed fishy and without allowing him to disclose the employee's name I told him we had a strict privacy policy.

Anyway, his tone turned a little more harsh when he said that he's enforcing a garnishment against our employee on a federally backed student loan. I then said that we comply with all court-provided garnishment orders. He interjected saying that a garnishment order was not necessary on a federal student loan. I retorted that he does need an order and that we won't garnish any wages until the order was provided. He then put me on hold without saying anything and I hung up.

Googling the number produced a student loan-type company called ECMC. They do have a CA division which is likely the source of this call. Question: can a student loan company garnish wages without a court order? I didn't see how it was possible seeing that I won't take any money out of any employee's paycheck without that order.

[Anonymous]

No, they can not.  A judgment has to be won then a garnishment order.  Does not matter whether it is federal or not.

The only thing they can do is notify the Department of Education who in turn will notify the IRS and they can offset your Federal Income Tax. 

[llecs]

Thanks guiness56. I thought as such and figured that it was an underhanded tactic by the CA. Though the federal issue had me second-guessing. I guess in the CA's eyes, the 4th amendment doesn't matter. I guess he expected me to take the money out and mail it.

ETA...I hope he calls back.

Message Edited by llecs on 09-23-2009 10:43 AM

[Anonymous]

The government rarely will file a lawsuit because they have different avenues to use.  But they can do it.

[Anonymous]

I would REALLY check on this - I defaulted on Federal Student Loans about 13 years ago - and they successfully garnished my wages (I work at one of the largest universities in the nation).  They had all the documentation that they needed in order to do so, and they continuted the garnishment until every last penny was paid...

***********************************************************************
800FICOwannabe

07/01/09 - FICO scores: EQ - 696, TU - 622 (Asset Acceptance reinserted as a new collection)
06/01/09 - FICO scores: EQ - 637, TU - 641
05/04/09 - FICO scores: EQ - 660, TU - 647
04/21/09 - FICO scores: EQ - 711, TU - 642
09/09/08 - Mortgage Enhanced: EQ - 607, EX - 556, TU - 534

[llecs]

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800FICOwannabe wrote:

I would REALLY check on this - I defaulted on Federal Student Loans about 13 years ago - and they successfully garnished my wages (I work at one of the largest universities in the nation).  They had all the documentation that they needed in order to do so, and they continuted the garnishment until every last penny was paid...

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What type of documentation was needed in your example? It would have to be a court-issued order, right? In other words, I can't call the employer and say "cut so-and-so's paycheck and give me part of it", right?

[Anonymous]

This was so long ago, I have access to it any longer, but I do specifically remember that my employer had received a court order to garnish my wages (I only owed about 3K) and they did so.  When I mentioned that I worked for a large university, I was implying that they wouldn't take this action without all of the required documentation.

***********************************************************************
800FICOwannabe

07/01/09 - FICO scores: EQ - 696, TU - 622 (Asset Acceptance reinserted as a new collection)
06/01/09 - FICO scores: EQ - 637, TU - 641
05/04/09 - FICO scores: EQ - 660, TU - 647
04/21/09 - FICO scores: EQ - 711, TU - 642
09/09/08 - Mortgage Enhanced: EQ - 607, EX - 556, TU - 534

[Anonymous]

I meant to say that I "don't" have access to it any longer!

***********************************************************************
800FICOwannabe

07/01/09 - FICO scores: EQ - 696, TU - 622 (Asset Acceptance reinserted as a new collection)
06/01/09 - FICO scores: EQ - 637, TU - 641
05/04/09 - FICO scores: EQ - 660, TU - 647
04/21/09 - FICO scores: EQ - 711, TU - 642
09/09/08 - Mortgage Enhanced: EQ - 607, EX - 556, TU - 534

[llecs]

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800FICOwannabe wrote:

This was so long ago, I have access to it any longer, but I do specifically remember that my employer had received a court order to garnish my wages (I only owed about 3K) and they did so.  When I mentioned that I worked for a large university, I was implying that they wouldn't take this action without all of the required documentation.

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But that's a court order. In my case, the CA that called is saying that a court order wasn't necessary, that they have a right to take anyone's wages at any time.

[angie204]

Can't you just tell the guy, "please send all correspondence regarding this matter to the following address..." then wait?

We don't pay any garnishments without documentation.