Unlawful Bank Garnishment?

[PleasantGal]

What is the name of your state? Ohio

In May, my husband and I decided it was time to refinace our home. Our mortage broker informed us that we had a lien put on our house for a credit card judgement, and asked me to contact the debt collector to make arrangments to pay this off. I called the debt collector (on a Friday) and agreed on a payoff amount. On Monday he sent a letter of payoff to my broker, signed with the date he wanted the money to be paid on. The following day of sending this letter, he went to the court and put a freeze on my bank account taking all of my money leaving me with nothing, and I still had two weeks left according to his letter. It finally got to the point to where talking to him had no effect. Even the mortage broker spoke to him and told him that we needed that money to pay our mortage payment so that he would get his money, and he said that he didn't care. It finally took talking to his supervisor, and he did release our funds back into our bank account.

Can he do this??

[racer72]

If he had a legal judgment, yes.

[PleasantGal]

Originally Posted by racer72

If he had a legal judgment, yes.

Thanks racer72.

I'm still just a little confused. The judgement was put against my home back in November. He knew back then that I had a bank account and job. He waited until I contacted him and made a verbal agreement, put it in writing and gave us a date to pay. He was assured numerous times (by my mortage broker) that the money would be there on the date he wanted it. He also knew that we couldn't go forward with our refinace unless we paid him. So, his company would receive $1,200 above what was agreed upon. Almost $1,000 above my original debt.

[Ladynred]

Obviously now knew you were tying to buy a house so he exercised his rights to enforce the judgment by siezing your bank account. Kinda stupid since he was going to get paid anyway, unless what he was going to get was a settlement for less than the full amount and he wanted it all - NOW.

He also knew that we couldn't go forward with our refinace unless we paid him.

BINGO !!

So, his company would receive $1,200 above what was agreed upon. Almost $1,000 above my original debt.

Exactly.. he got it ALL, including the statutory interest that the judgment has been accruing since it was entered against you.

Don't EVER make the mistake of believing that a debt collector will not LIE.. or that they will actually settle for less when they can get it ALL - and this guy did just that. If you have nothing in writing as an agreement, you have, literally, NOTHING to bind them legally.

[PleasantGal]

If you have nothing in writing as an agreement, you have, literally, NOTHING to bind them legally.

I did have a letter from them on June 5 stating that if we paid XXX amount of dollars by the 30th that our debt would be paid and the lien would be released. Signed by the same person that I spoke to on the phone. He filed for bank garnishment on the 6th.