Debt issue

[beachbug85]

What is the name of your state?What is the name of your state? Pennsylvaina..

I have a question regarding a debt agency that keeps calling me regarding a balance that I have with Amex. I have a $2200.00 outstanding balance with AMEX that I am behind on and that has been turned over to their credit agency. The credit agency keeps calling and leaving nasty messages saying that if I do not call them back they will contact an attorney. I finally spoke with someone and set up a payment plan with them for 2 automatic withdrawls from my checking account for 1100.00. Well I thought that I would be able to do that but realized that I could not without causing issues with other creditors like my landlord. I called the agency the day before the money was to be taken out and told them of my situation and asked that they cancel the withdrawl, of course they said that they could not do that so I went to my bank and put a stop payment on it. Now they are calling me at work say that they are going to contact their attorney and my HR dept and garnish my wages because my state allows that to happen. I really want to resolve this issue and I understand that I am responsible I have just over extended myself. But with the threatening phone calls and threats to garnish my wages I don't know what to do. So I guess my question is can they actually do that? Would I be better off contacting AMEX to set up a payment plan? I know that I can get this paid off but not for a few more months. HELP

 

[bistro]

First, if the collection agency made this statement they may have violated the Fair Debt and Collection Practices Act. They abosulely can't contact your employer, or anyone else related to this debt, with out being in violation.

As for garnishiment, see next from Freeadvice.com on wage garnishment. To do a wage garnishment a company must first obtain a courts order to do so. You are a long way from there.

HOW DO I OBTAIN WAGE GARNISHMENT AGAINST A JUDGMENT DEBTOR?
Under wage garnishment, the employer of a judgment debtor is directed to withhold a portion of the judgment debtor's wages earned (typically up to 25% for a money judgment or up to 50% of an order for support) and then make this payment directly to the judgment creditor.

Just like execution and levy against property, the first step typically is to obtain a Writ of Execution from the Clerk of the court which issued the judgment. In addition, an Application and Order for Wage Garnishment is completed and obtained. An Order of Wage Garnishment is a specific order issued by a court directly the employer to withhold earnings of the judgment debtor and to make payment of all amounts withheld directly to the judgment debtor.

Once obtained, the judgment creditor must have the Order of Wage Garnishment served upon the employer. Should an employer who has been properly served with an Order of Wage Garnishment fail to comply with the order, typically the employer can then be held responsible for any amount which should have been withheld from the judgment debtor's pay check.


Now, how do you handle the collection agency. If you plan to pay the debt, work out a payment plan that is reasonable for you. You can begin making payments on your own to AMEX. This will not stop the collections, but AMEX may recall it and begin servicing you account again.

You can pay the agency, but you will not get a statement of you payments (possibly) thus proof of the balance is an issue.

I suggest you contact AMEX to work out a plan. If that fails, make your own payments and let the calls continue. For this amount of money, I dont think you'll see a court, if you make modest payments.

Don't let the collection agency scare you into payments that will hurt your home, car, or health. This is not a large amount of money and ONLY Amex can authorize legal action - not the collection agency - as they own the debt - not the collection agency.

 

[Ladynred]

Bistro, I suggest you read some state statutes before you start running off.

WAGES CANNOT BE GARNISHED IN PA !!!

To even threaten you with it is a violation of the FDCPA, but the problem is, are you SURE this is a 3rd party debt collector ?? If you're only a couple of months behind, AMEX hasn't charged-off the account and you are likely still dealing with in-house collections. They're still WRONG but the FDCPA doesn't have any force against original creditors.

NEVER give them a 'check by phone' , send them a cashiers check express mail if they want it faster, but don't ever let them draft your account with 'post dated' checks !

Regardless, there is NOTHING they can do without first suing you and getting a judgment. If the account isn't even charged-off, they're full of crap about suing you this early in the game.

Don't let them scare you - that's their tactic. They CAN'T garnish wages in PA and if you own a home that is deeded as tenancy by entirety, they can't touch that either. Further, PA doesn't allow liens to be placed on real property for unsecured debts.

So, now you know what they CAN'T do and how much trash they're throwing at you. See if Amex has a hardship program and how you can get on it.

 

[winkie2000]

Deleted!!!

 

[racer72]

Winkie, start your own thread. It is considered very very rude to hijack someone elses post. Please delete your post and start a new one.

 

[winkie2000]

OK, Racer72, no problem, whatever you say....... I was just sharing. Not "hijacking". I didn't know that was not allowed, against the rules, against the law. I will deleted my reply and stick it elsewhere. What is wrong with everyone on these websites and forums??? I was warned not to come here by someone, I should of listened. Are there people actually waiting for someone new to post in the wrong area and make a mistake so they can take the pleasure in picking on them?