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Do collection agencies have the right to freeze your checking account without going to court for a credit card debt of over 10K on the original credit card?
Wiki User
∙ 16y ago
Collection agencies cannot do anything but attempt to collect the debt -- via phone calls mostly which is a pain, but you don't have to talk to them. They can, with the permission of the original creditor, turn the account over to an attorney. The attorney must follow due process through the court system. Only through due process can assets be siezed or liquidated to satisfy debts. The exception is the IRS. They do pretty much what they will, so pay your income taxes when due. The IRS can seize your checking account in a New York minute. Typically state owed taxes, court ordered child support, or any previous court ordered judgment require an order to attach wages or access your checking account.
Wiki User
∙ 16y ago
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Can collection agencies garnish or seize your checking account?
no
Why original creditors sale accounts to a collection agency?
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
What percentage of the debt do third party collection agencies typically pay for a delinquent account?
5%
Do you have to pay the original balance on account that has been sold to collection agency?
yes
What does it mean when your credit report states that you have a paid closed collection account on you credit report?
The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.
Can collection agencies garnish or seize your checking account?
no
Can collection agencies tap a personal bank account?
Yes! Creditors can garnish a personal checking account. As long as the creditor has the checking account info they can garnish a checking account.
Can collection agencies freeze your savings account?
No, collection agencies do not have any right to freeze your savings account. Only banks have the right to freeze your account but depends on the nature of the default.
Why original creditors sale accounts to a collection agency?
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
Do collection agencies usually garnish wages?
Collection agencies are usually retained by the establishment that you owe the defaulted debt to, if the borrower ( person in debt) does not want to work with the collection agency handling their debt, the collection agency will then document the account as a refusal then send the account back to the original lender then they will garnish your wages until the life of the loan is paid off.
How is it possible for a collection agency to freeze your checking account with out giving proper notice and how do you go about taking care of this matter?
Collection agencies do not normally have that power without a court order. You should go see a lawyer ASAP.
How do collection agencys find your work number if not on record?
Collection agencies buy defaulted accounts from original creditors. The original creditor supplies all the information to the collectors that was obtained upon the opening of the account. (Name, SSN, place of employment, etc.).
Can a repoed account be sold three times to different collection agencies with the last one demanding an amount exceeding the original loan?
It can be sold as long as a buyer can be found.
Can collection agencies take money from a personal bank account in TX?
Yes they can.
Can collection agencies garnish a pension in Pa that is direct deposite in a checking account if the pension is paid by PGBC a government program?
A collection agency can only garnish pensions in PA that is directed deposited in a checking about if the pension is paid by PGBC, a government program if the debtor has not filed an exemption. Typically, the debtor has 10 to 21 to file an exemption.
Will attorneys hired by collection agencies ask for credit card info?
Yes don't give them your credit card info, checking account number or tell them where you work at or bank at, they will use it all against you to clean you out.
What do you do if an account was turned over to a collection agency but the original creditor accepted your payment in full?
Contact the original creditor. Provide proof of your payment. They need to retract the account from the collection agency. The account could have been sold to the collection agency or simply assigned to them. For your purposes, it does not matter which situation applies. You paid the original creditor and your credit report needs to reflect this. After they do what they need to do to get the account back; you then dispute the entries with all three credit bureaus. The original account should show as a paid collection and the other collection account should be removed from your credit report entirely.
