Can credit card companies garnish your bank account if you don't pay the bills?

Answer 1

Yes, with a court order.

Obviously, its sort of a conflict to start to say you have money in the bank, but won't pay your bills...those things you promised to pay with ANY money you had before others and certainly new ones.

If the credit card company is the same or affiliated with your bank, and your bank account contract provides for it (which most all modern ones do), you will probably find in the credit card agreement you made with it, that they do not even have to proceed in a court process; they can just withdraw the amount owed from any account you have with the bank.

Obviously, the company and the bank must maintain careful records to which you and your counsel have access if there is a question in the courts.

In addition, you may be responsible for all accruing interest, and any costs which the creditor incurrs to satisfy the debt. Your contract will probably control.

Common sense should tell you, all these large, powerful, rich and influential banks and lenders have not become so by accepting "I can't/won't pay...what ya' gonna do about it" and not being able to collect their loans and the costs of doing so.

Finally, I don't think garnish is the correct term (that is generally used for something against wages)...I believe it is "offset" or "seize".

AnswerYES! They absolutely can. In the state of Virginia they can draw unpaid debt right out of your account. That goes for the IRS obviously as well.