International debt collection in the state of Pennsylvania

[BertUS]

Pennsylvania

New member here - hoping I'm sticking to the rules. Question is regarding international debt collection in the state of Pennsylvania and the USA in general.

I have been a legal permanent resident (green card holder) of the United States since June 2015.
The South African Revenue Services (equivalent to the IRS) retrieved moneys from my South African Bank Account because they believed said moneys were owed as income tax in June 2016. After a tedious battle with said revenue service they paid back a substantial amount but was adamant that I owe ±$20,000.00. There were insufficient funds in this South African account and it forced the bank to put it on overdraft (unsecured) when they first withdrew money. I never approved this amount to be placed on overdraft but the revenue service took it regardless. As far as the revenue service is concerned the tax is settled. The bank however is now harassing family members in South Africa for my contact details and called me at my place of employment here in the US demanding payment. I did not at any point admit that any moneys are owed to said bank. This is a local South African bank with no international ties or offices (that I know of) in the United States. When I financially emigrated from South Africa I left no financial assets behind except about ±$2,000.00 which the South African Revenue Services took from my account and I now count as lost. I do not have the money to pay this overdraft and do not believe that it should ever have been paid out by the bank in question.
1. Can/will the alleged ±$18,000.00 debt be retrievable here in the US?
2. Can they garnish my wages and any other income here in the US?
3. Will this have an effect on my US Credit Score? I do not care about my South African credit history.

 

[LdiJ]

Pennsylvania

New member here - hoping I'm sticking to the rules. Question is regarding international debt collection in the state of Pennsylvania and the USA in general.

I have been a legal permanent resident (green card holder) of the United States since June 2015.
The South African Revenue Services (equivalent to the IRS) retrieved moneys from my South African Bank Account because they believed said moneys were owed as income tax in June 2016. After a tedious battle with said revenue service they paid back a substantial amount but was adamant that I owe ±$20,000.00. There were insufficient funds in this South African account and it forced the bank to put it on overdraft (unsecured) when they first withdrew money. I never approved this amount to be placed on overdraft but the revenue service took it regardless. As far as the revenue service is concerned the tax is settled. The bank however is now harassing family members in South Africa for my contact details and called me at my place of employment here in the US demanding payment. I did not at any point admit that any moneys are owed to said bank. This is a local South African bank with no international ties or offices (that I know of) in the United States. When I financially emigrated from South Africa I left no financial assets behind except about ±$2,000.00 which the South African Revenue Services took from my account and I now count as lost. I do not have the money to pay this overdraft and do not believe that it should ever have been paid out by the bank in question.
1. Can/will the alleged ±$18,000.00 debt be retrievable here in the US?
2. Can they garnish my wages and any other income here in the US?
3. Will this have an effect on my US Credit Score? I do not care about my South African credit history.

Yes, it can be pursued in the US. Whether or not it will be is impossible to know. I am astonished that the banking laws in South Africa allow for such an overdraft.

 

[ejames23]

Yes, it can be pursued in the US. Whether or not it will be is impossible to know. I am astonished that the banking laws in South Africa allow for such an overdraft.

why? that is like 1400 bucks. banks here overdraft that all the time

 

[FlyingRon]

They'd have to sue you here. While there is some international treaty to recognize legal documents from signatory states of certain treaties (to which the US is one), there's no summary procedure to domesticate a foreign (non-US) judgment here directly as there is if you had a judgement in another US state.

 

[BertUS]

why? that is like 1400 bucks. banks here overdraft that all the time

Nope, it really is 18,000.00 USD - and the overdraft was grandfathered in from a trading account I had with the bank. From what I understand from other expats, it is not uncommon for the South African Revenue Services to withdraw money from bank accounts without notice.

 

[BertUS]

They'd have to sue you here. While there is some international treaty to recognize legal documents from signatory states of certain treaties (to which the US is one), there's no summary procedure to domesticate a foreign (non-US) judgment here directly as there is if you had a judgement in another US state.

Thank you for clarifying that. Two questions regarding this…
1. Would it be worth their while litigating here in the US for a little under $18,000.00? I can imagine it is going to cost a lot of money to try and pursue this?
2. They would not be able to collect the so called debt after a period of five years in South Africa (which I understand started counting in July when SARS partially refunded the tax return). Will this 5 year countdown restart the moment they start litigation in the US?

For posterity sake, I thought I’ll share this on the forum. This is copied from a closed group on a social media website, but I think it is relevant: “I am in the USA and SARS took over R300 000 ($22,500.00 USD at today’s exchange rate) from my account. It is legal and the bank does not have to notify you. SARS simply issues a directive against the account and the minute money is available the bank under law has to transfer it to SARS. If you do not have money available SARS can only take what you have, so you may argue that the overdraft is a facility, and is not available funds and I would fight it on this basis. The banks that I have heard of do not pursue the debt as the collection costs are high. The SAFFAS (South African Expatriates) who have defaulted were not prejudiced with their Green Card renewal. If you however have any assets or policies in South Africa they may be able to apply for a liquidation order and collect this way. Then you credit goes to the dogs if ever you wish to return to SA.”