Collection problem

collection problemWhat is the name of your state?AZ

I had a Daewoo which was also a lemon and paid on it for 2 years. The Daewoo company went bankrupt while I was in the lemon-law process so the AZ lemon lawyer said I had to get a Calif. lawyer. Calif. wanted money up front. I used a ton of money fixing the car AND it still had multiple problems. I couldn't afford to operate the car, maintain it's repair bills and make the payments, and hire an attorney. A free session with an attorney here said it wasn't worth what it would cost me. So I asked the creditor to repossess the car. They did. Of course I now owe more than the original purchase price. I want to know how to stop the collection agency from tapping into my bank account. If I pay them a small sum monthly, will that starve them out or what am I to do?

[JETX]

"I want to know how to stop the collection agency from tapping into my bank account."
*** First, the collection agency can't 'tap' your bank account with first obtaining a court judgment against you.

"If I pay them a small sum monthly, will that starve them out"
*** No. There is no obligation for a creditor to accept less than owed..... nor does a partial payment waive their right to pursue collection.

[Ladynred]

Paying the Collection agency small amounts won't do anything - its just your finger in the dike that will break over you eventually.

The CA can NOT go into your bank account unless they sue you and win a judgment FIRST.

However, IF you sent them any payments with a personal check or ever gave them your banking info, then they could be dirty about it and try sending thru an unauthorized draft. If that is the case, the best way to protect yourself is to close the account and get another one at different bank and NEVER pay them with a personal check !

[quote=Ladynred]Paying the Collection agency small amounts won't do anything - its just your finger in the dike that will break over you eventually.

The CA can NOT go into your bank account unless they sue you and win a judgment FIRST.

Thank you very much. Is that a law in AZ? I'm not familiar with the laws here. When I lived in Oregon I knew a person who had their bank account tapped - was at a credit union - as soon as the full amount of the debt was in the bank, it was released to the creditor; the party did not know anything about it until the bounced checks rolled in. That was a medical bill. I was really worried that they could just go in and take what little I have to live on each month. Can't happen without a judgement? And how do I know if/when they have a judgement? Do I get a chance to go before the judge too? Thank you.

[JETX]

"Is that a law in AZ?"
*** That is the law everywhere. Simply, a creditor cannot garnish or seize your bank account funds without a judgment. See below.

"I'm not familiar with the laws here. When I lived in Oregon I knew a person who had their bank account tapped - was at a credit union - as soon as the full amount of the debt was in the bank, it was released to the creditor; the party did not know anything about it until the bounced checks rolled in. That was a medical bill."
*** Someone either misunderstood your friends situation, or it isn't has you remember.

The ONLY way that a creditor can tap a bank account without a judgment is if the lender and the account are the same.
For example, lets say you have a $3000 car note at your bank and are in breach of that note. However, you have $5000 in a savings account at the same bank. The bank can take the $3000 from the savings account. They can do this because in the note you signed with the bank, you gave them permission to 'draw from other accounts if in breach of the note'.

"And how do I know if/when they have a judgement? Do I get a chance to go before the judge too?"
*** In order to be sued, the lender (plaintiff) must put you on notice of the lawsuit, giving you an opportunity to defend yourself from their claim(s). You should be aware that if the lender is unable to find you for notice, most states provide 'alternate' service that could include a simple 'notice' to be published in a local paper or periodical. So, it could be important for you to make sure that the creditor knows how to contact you.

[Ladynred]

In addition, if by some chance they couldn't find you and you were sued, you can always call the local courthouse and ask the court clerk to check and see if any lawsuits had been filed against you. If the answer is yes, you can request a copy of the case file, it'll give you all the gory details.

[JETX]

Originally Posted by Ladynred

In addition, if by some chance they couldn't find you and you were sued, you can always call the local courthouse and ask the court clerk to check and see if any lawsuits had been filed against you. If the answer is yes, you can request a copy of the case file, it'll give you all the gory details.

Just a quick comment on this... most counties have several civil court levels in them and they are often NOT connected by any kind of central 'records'. If this is the case in YOUR county, you may need to contact SEVERAL courts to find out if there are any judgments against you.