Restraint on Checking Accounts

[AngelinNY]

I live in NY state and had the strangest thing happen. I went online to view my checking account to pay some bills and saw I had $0.12 in it and that over $300 was removed. I called my bank and they informed me I had a restraint on my checking account. I was given the phone number of the law offices and was told I was sued for a company that said I never paid for some magazines. First I never received any magazines and I never ordered any (especially not $300 worth). I never received any notice of being sued or summons for a court. Also the only money I receive is from Social Security Supplement because I am disabled. Now I'm having a difficult time having them release my money. I need to pay rent and get meds for my disabilities which are serious. They don't seem to care though and basically are holding my funds hostage. What can I do?

[ablessin]

If you were sued, then your bank must abide by the order they received.

Any deposited funds may not credit to you either, so if possible, don't make any deposits to your checking account until you get this cleared up.

I wonder if a checking account number was transposed by someone at this law firm. Have you called them yet? What did they say?
Hopefully it won't be too hard for you to prove this was a case of mistaken identity or they may have made an error.

At any rate, your banks "hands are tied" so to speak. It's probably not that they don't care, (I hope) but that they are legally bound to enforce the restraining order on your account until this law firm authorizes it's release.

Good luck

[JETX]

Originally Posted by AngelinNY

What can I do?

Lots..... but it is NOT going to be easy and it is going to take some work on your part.

1) First, get a copy of the garnishment/levy that was served on the bank (you should also have gotten a copy). Read it and follow the directions as to how to file a challenge to the garnishment.
2) Go to the court that issued the order and ask to review the file. Get copies of the complaint and the 'notice of service'. Read them. The complaint will detail who, what and why. The 'notice of service' will detail how they claim YOU were served with this notice.
If it ends up you are not the person that was sued... or you were NOT served properly (in accordance with your state laws), you will have to file a motion to vacate the judgment and tell the court.
3) You can also contact the attorney or judgment creditor.... and try to explain their error (if any) or to try to negotiate a payment plan if the judgment is valid.

You will need to be PROACTIVE in this.... the court and bank will NOT do it for you.

[Ladynred]

Not to mention the fact that SSDI is exempt from siezure !

You also need to find out more about this so-called magazine company. There was a major scam going in for EXACTLY this kind of thing and the FTC went after them. It could be the same company or a different one but it does sound like it could be the same SCAM.

Go to the court or call them and get a copy of the judgment case file, find out EXACTLY who sued you and all the details.

Then I would suggest that you call Elliot Spitzer's office in Albany, your NY Attorney General is very good and if you've been scammed, his office can do something about it.

You can find some info on the FTC actions here:
[url]http://www.ftc.gov/opa/1997/05/magazine.htm[/url]

There are more !

[comathon]

I had a similiar experience recently. Money was taken from my retirement fund. I called the Attorney Generals Office. They directed me to the right department. They wrote to the Bank & my money was returned to me. Your Social Security is exempt. Good Luck.