Re: What are some of the methods collectors use to... - Page 2 - myFICO® Forums

Anonymous · ‎05-17-2008

@Anonymous wrote:

@Anonymous wrote:
The company that is handling the defaulted loan has the right to just take the funds out of your account like the IRS does if you have back taxes. Most of the time tho, CA's will not do this.
This is blantantly false. Not even the IRS can take money out of your account without a court judgement.
With false information like this I think we can see why some many CA's violate the law.

sorry I didn't state that, I figured by mentioning the IRS you would know that a court judgement is required to do this but still the fact remains that it is possible for this to take place and it actually isn't very hard get the court judgement as long as calls and letters were properly sent and documented showing the attempts to collect on the debt. the borrower usually doesn't even know that the judgement took place until its too late and the money is gone. sad really.

fused · ‎05-17-2008

techno-pagan wrote:

This is blantantly false. Not even the IRS can take money out of your account without a court judgement.

With false information like this I think we can see why some many CA's violate the law.

Not true! The IRS can raid your accounts if, and only if, you have a tax lien with a balance. But a CA, no way! I agree!

Anonymous · ‎05-17-2008

fused wrote:

techno-pagan wrote:

This is blantantly false. Not even the IRS can take money out of your account without a court judgement.

With false information like this I think we can see why some many CA's violate the law.

Not true! The IRS can raid your accounts if, and only if, you have a tax lien with a balance. But a CA, no way! I agree!

Do they not have to file the lien with the court? There is some sort of due process isn't there?

Anonymous · ‎05-17-2008

Before any company or the IRS can garnish your wages, tax returns, take money from your accounts or put a lien on your house/car, they have to file something with the court and prove that they have tried all they can to collect the debt.

If you have a past due account and ignore the calls and the letters because you don't have the money or you don't want to deal with it, all you are doing is hurting yourself. if you take the calls even once a day or make calls to try and work something out, these records are presented to the judge and he/she will see that you are trying and deny the garnishment or lien. Unless they are in a bad mood.

fused · ‎05-17-2008

techno-pagan wrote:

Do they not have to file the lien with the court? There is some sort of due process isn't there?

Yes they do! I know this because I'm helping 3 people right now with federal tax liens. In all my experience with credit repair tax, liens are relatively new to me, and I'm trying to learn as much as I can before doing too much too soon and digging deeper holes for the ones I'm trying to help. Back to the CAs. If they have a legal right to raid bank accounts without judgments or dues process as you mention, they wouldn't be nice guys, and they wouldn't sit around and wait to raid your accounts. LOL!

Anonymous · ‎05-17-2008

codeman5022 wrote:
Your bank accounts DO report to your credit report but they do not count against you or for you in any way. Although, when YOU check your credit, you will not see this information on your credit report.

When you request your file disclosure from the CRA you are to obtain ALL the information about you in the file.

TopCat99 · ‎05-18-2008

@Anonymous wrote:
@Anonymous wrote:
codeman5022 wrote: The company that is handling the defaulted loan has the right to just take the funds out of your account like the IRS does if you have back taxes. Most of the time tho, CA's will not do this.
This is blantantly false. Not even the IRS can take money out of your account without a court judgement.
With false information like this I think we can see why some many CA's violate the law.
sorry I didn't state that, I figured by mentioning the IRS you would know that a court judgement is required to do this but still the fact remains that it is possible for this to take place and it actually isn't very hard get the court judgement as long as calls and letters were properly sent and documented showing the attempts to collect on the debt. the borrower usually doesn't even know that the judgement took place until its too late and the money is gone. sad really.

If this were true, the CA who had a judgment against me would have just taken the money. Instead, they sent more letters demanding that I follow the court's "order" to pay. Then they sent a nicer letter offering to settle a short time later--a little late to play nice, don't ya think? (I say "order" because it's a civil judgment--meaning all the court does is affirm it's valid, not order you to pay $X in Y days or similar.) I also had two certified letters before the court date: the first from the CA warning me of ITS and the second CM/restricted delivery from the court notifying me of the suit. There was very little chance of it being "too late" to know what was afoot.

Similarly, the IRS has a seemingly endless letter-writing campaign before they ever do much of anything with the legal system--at least in my case. I never left it get close to a lien or garnishment, however, so I can't speak on that side of it. Once I got those types of letters, I set up an installment agreement (instead of just sending money without an agreement in place) and they were happy. The point again, tho, is why didn't they just Hoover the checking account if they could?

Message Edited by TopCat99 on 05-18-2008 10:47 AM

Junejer · ‎05-18-2008

@Anonymous wrote:
ByrdMan, have you actually read your privacy notice from your bank? Most privacy notices from banks state that they will not give out your account information to any third party without expressed permission and then somewhere along the line there is a disclaimer stating that if you owe a debt to a company and they request info about your checking/savings account, they are required to provide the information. The only reason being imo is let's say you default on a loan, have no job, do not collect unemployment or ssi but you have $500 in the bank. The company that is handling the defaulted loan has the right to just take the funds out of your account like the IRS does if you have back taxes. Most of the time tho, CA's will not do this.

All in all, once open a trade line, they can get any info about you they want or need because you have already given them consent.

Codeman, garnishments are different from judgments too. I worked for banks for a good portion of my life and never, ever have heard of such unless there was a garnishment. Again, I say, that this information is blatantly false. Like Fused stated, if they so easily had access to your funds, why the heck would they bother wasting time and money calling the folks that owed them? Why not just yank the funds? Besides that, that would mean that they would have to be online with every bank and credit union in the USA.

It just occurred to me that I have wasted valuable time both reading and posting to this foolishness.

ETA: Kind of like those spam emails that promise you bad luck if you don't pass the message along to 10 people within 10 minutes of reading. LOL. Designed to waste your time.

Message Edited by ByrdMan on 05-18-2008 10:56 AM