Can a collection agency garnish my wages?

From what my clients have told me, this threat occurs with great frequency. The typical scenario is that the individual has to pay a credit account. The original creditor is Citibank or Capital One or failed in his attempt to get the person in default of payment. Individual debt is now called "bad debt". Many times the original creditor simply give and sell "bad debt" to an external company, as a collectionagency for pennies on the dollar, sometimes even less.

The collection agency then attempts to collect bad debt to realize their investment. Initially, there may be a phone call or two, then a letter from the agency for the individual. If the bill is not paid immediately in full, some collection agencies and makes efforts to a higher level or three, and start making threats to person.

The most common threat is that the individual wagewill be frozen. Often, the agency will tell the person that wages be garnished "next week" if the bill is not paid in full, or alternatively, if a substantial payment is not made in the account. If this happens, it can actually be a good thing, because the only debt collector violated the Fair Debt Collection Practices Act Fair Debt Collection Practices Actis a federal law that regulates and orders that a debt collector can do in your attempt to collect a monetary debt. In my experience, I discovered that many collection agencies violate the law on a daily basis.

I can say with certainty that there is no law on earth that allows the creditor, as the collection agency to garnish your wages without due process of law. due process, in short, is the ideal that we should allowpresent its case in a court of law. Everyone is entitled to his day in court, no matter how open and close the case may appear.

If a collector threatens to garnish your wages without the filing of a civil case, make sure you know exactly who is speaking, what company they are with their address and phone number again. Enter the date and time of the call as well. Then, contact a consumer attorney in your area to start a formal procedure againstthe debt collector. Under the Fair Debt Collection Practices Act, you are entitled to monetary damages and to recover their legal costs. In this sense, lawyers for many consumers do not pay a company to establish one of these actions, or charge a small fee and sought to recover the cost of offending the collection agency. If all goes well in your case, the debt must be paid, you end up with somedollars in his pocket, and legal fees are paid well.