Bank Account Frozen

[b76fa]

What is the name of your state?What is the name of your state?NY

Yesterday My bank account was frozen by a collection agency that had a judgement against me.My question is what is my next course of action. I called the collection agency and said that I wanted to arrange payments to pay of the debt.They wanted me to fax over my account with the totals of my checking and savings. I had $990 in checking and $1000 in savings.He said that he would have to take $1500 at the minimum.I explained that my rent had not been paid yet for this month and the check was about to go ,he said it would have to be $1500...Info I gavve was my employer,no. of employer,home address,postion etc. I called back early yesterday to try and talk to him again and arrange a payment plan but he didnt call back.today is now Saturday. One more thing....My account recieves direct deposit from my work...will this be taken also?? as I read somewhere online that only the funds in the account at the time can be frozen...Please help...thank a lot.

 

[olgethorpe]

You need another account...

Go immediately and open another account at a different bank. Change your direct deposit at work to the new account ASAP. The collection agency will not abide by anything they tell you over the phone, and you've already given them too much information. If they know where you work, the next thing they'll do is garnishee your wages.

You need to do some research and find out exactly what your rights are. Was this for a credit card account? Do you have more?

You might want to go look at www.creditinfocenter.com for some additional advice...

 

[b76fa]

Ny State

If they go Ahead and garnish my wages do they take the freeze off of my account or does that stay on until its all paid back?

Jeff

 

[olgethorpe]

Don't know...

I don't really know the answer to that. If they ask all those question, I would guess they're expecting to take your bank accounts AND then see what else they can get. Never trust a collection agency. Unless you get an agreement in writing that spells out exactly what you'll do / they'll do never beleive anything they say.

 

[venture20]

im a certified credit counselor

opening a new bank account wont help, they will freeze that one as well. What you need to do is offer them 10 percent of your gross per month as payment for the debt. Leagally thats all they can take in a judgement.

 

[b76fa]

ny state

Venture20,
Do I need to call them and offer the 10% (then they will unfreeze my account?) or is the 10% what they will take from my wages if they garnish them(which I suspect they will do).
Thanks everyone for the responses.

 

[b76fa]

NY

Also how is the wage garnishment accomplished? Do I recieve notification through certified mail etc..Any help is appreciated.

 

[olgethorpe]

Well...

Given that most "certified credit counselors" are scams working (at least indirectly) for the credit card companies, I'm not sure I'd trust their advice. (I apologize if I'm wrong about "venture20"...but if it looks like a duck and walks like a duck...then...)

Anyway, the only way the CA is going to unfreeze your account is when they get their money...you've already given enough info to know that the $1500 they want is there...so...they'll take that.

Again, go open another account at a different bank and do your banking there. Assume that your old account is gone. Will the CA freeze that one? Not until they find it and go through the same judgement proceedings they did to get the first one. And, if there's enough money in the old account to pay them off, they won't bother.

Garnishement (sp?) also doesn't happen automatically. There has to be a court order (judgement) and papers filed with your employer. Calling them up and offering 10% per month is NOT a good move. First of all, they'll lie to you on the phone just to get their hands on your money. Unless you get everything in writing, there is not even a gurantee that these payments would be applied to your original debt. Be careful with these idiots...do everything in writing.

 

[b76fa]

Thanks again,

Will I have a problem opening a new account now that there is a judgement against me and my bank accounts have been frozen?..So to garnish wages they have to file papers to my empoyer? Do I get a copy of all these papers etc?

 

[olgethorpe]

Don't think so...

As long as you go to a different bank (not just another branch) and have cash to deposit, you shouldn't have any trouble. They don't check your credit report to open an account.