wage garnishings

[Naydia]

What is the name of your state? Indiana

Almost 2 years ago my husband decided to get help with his debt and found Homeland Financial. Before starting their program, he had been paying his bills on time and had perfect credit with all of his accounts.

The problem was we were expecting and times got a little rough so he decided to take care of the debt before it overwelmed us.

All of the creditors except for Discover got back with us and settled on the debts. Discover did not acknowledge Homeland Financial even though he sent in certified letters stating they had Power of Attourney.

He follwed Homeland Financial's requirements but Discover still would not talk. My husband even sent a certified letter stating he could pay $200.00 a month until the debt program was over and then raise it to be more once he was finished with the program. Discover did not acknowledge that either.

We didn't hear from Discover for about a year. 6 months ago they sent court papers over saying they were suing him. It rquired my husband to send in what happened, etc.

We didn't hear anything until a few days ago with more court papers. Only this time for wage garnishings.

My questions:
1. Was it legal for Discover to ignore both Homeland Financial and my husband? After all, he wasn't trying to get out of the debt, he knew he owed it and tried to get them to agree on the $200.00 a month.

2. I feel that my husband didn't get a fair trail... assuming they went by just the paperwork that was sent in. Will he get one? Or does he have to appeal after the garnishing case?

3. Discover's lawyers are giving my husband 2 weeks to come up with $1000.00 and then they claim they will work out a payment schedule. This sounds like they are taking advantage of the situation, or is it just me?

4. Is there nothing that he can do?

Thanks in advance.

[zippysgoddess]

No, it is not illegal, they are in no way obligated to work with that company, or accept less than the minimum payment due at any time. And, if you let it go, and didn't keep paying them, then of course they have the right to demand payment in full at any time, or sue you if you don't pay it.

If they took you to court then yes, they can garnish, and you are stuck. You let them get a default judgement against you.

You might want to check his credit report, just because he went through Homeland Financial, it doesn't mean that the other places you owed did'nt put lates, or charge offs on there. Not all of these places that help you arrange to pay stuff, always pay on time, or the minimum amount due.

Yes, there is something you can do, pay the bill.

[JETX]

Originally Posted by Naydia

Was it legal for Discover to ignore both Homeland Financial and my husband?

Yep.

After all, he wasn't trying to get out of the debt, he knew he owed it and tried to get them to agree on the $200.00 a month.

As you have discovered, there is NO obligation for the creditor to accept anything less than what is owed.... or to accept an offered payment plan.

I feel that my husband didn't get a fair trail... assuming they went by just the paperwork that was sent in. Will he get one?

Why don't you think he got a 'fair trial'??? Your own post says that he was noticed of the lawsuit ("6 months ago they sent court papers over saying they were suing him."). THAT was his opportunity to get a 'fair trial'. He ignored it!!

Or does he have to appeal after the garnishing case?

Nope. The time for appealing that judgment has long passed. He should have gotten off his ass and 'taken care of business'... at the time.

Discover's lawyers are giving my husband 2 weeks to come up with $1000.00 and then they claim they will work out a payment schedule. This sounds like they are taking advantage of the situation, or is it just me?

Just you.

Is there nothing that he can do?

Yep. Pay the judgment, plus costs, plus interest, plus legal fees.

[debtcollector`]

Originally Posted by JETX

Yep. Pay the judgment, plus costs, plus interest, plus legal fees.

Wow, so expensive. All because another sucker fell for the CCCS line. I see anywhere from 5 to 10 of those people a week. They all come off with the same line -- you have to talk to XYZ, they are handling this. Then we charge -off their account and place it with an agency that pays 50 cents on the dollar and gives them one chance to pay in full before suing.

At first I felt bad for them -- now I just laugh and code the file for charge off.

**Although, to be honest, I wish my agency bought debt like these. I would love to be able to say: "If you do not pay the balance in full in seven days, we will commence legal action to recover our money."

DC