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Can a collection agency place a lien on your bank account for a defaulted student loan?
Wiki User
∙ 12y ago
Only if the collection agency has a judgment against you in court. And by judgment I mean that you've been sued, gone to court, and found liable to the collection agency or lender for the amount you've borrowed and not payed. So, unless you've been sued, you've been found to owe the collection agency by a judge or jury, and a judge has ordered a lien in order to enforce a judgment (make you pay), then no. Collection agencies don't have the power to swoop in and take your money. And if you're having a problem with a collection agency, DO NOT SPEAK TO THEM on the phone. Ever. Under any circumstances. I can't stress this enough. Their only job is to intimidate you into paying them, often through lies and in violation of your rights. Only communicate with them in writing, preferably via certified mail, returned receipt requested.
Also, you're protected against abusive collection agencies by both the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). Here's some links about it that I've found helpful, all good, free info. And the creditinfocenter.com has lots of different instructional pages dealing with various credit issues:
http://www.privacyrights.org/fs/fs27-debtcoll.htm#6
http://www.creditinfocenter.com/rebuild/creditorharassment.shtml
http://www.creditinfocenter.com/rebuild/debt_validation.shtml
Hope this helps.
ALTERNATE ANSWER:
In the US, you can get out of default and not worry about liens, collections and garnishments with help from experts. You can receive a payment that is Taylor suited to your budget, and not have to get caught up on payments. If you want help, click on the link at the bottom of this text box.
Wiki User
∙ 12y ago
Wiki User
∙ 16y agothe collection agency doesn't do that. the federal quarantor and/or the department of education have the only power to place liens or offsets
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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.
What kind of service does a collection agency provide?
A collection agency is commissioned to collect money from those who have defaulted on credit card bills or loans. The agency tries to recover as much money as possible.
Can collection agencies take you to the court?
Absolutely they can ! The only reason a person needs to deal with a collection agency, is because they defaulted on payments to the original company. That company passed the account to a debt-recovery agency, who paid the sum YOU owe to the original company. If you simply refuse to pay the collection agency, they have the legal right to take you to court to recover the debt !
When an old account is sold to another collection agency does the account become new again?
No. The state SOL begins approximately 6 months after the debt is defaulted upon. (Usually the last activity on the account). If any money is paid on the account, the debt is considered to be reaffirmed.
Can collection agency get money from student on assistance?
no
Can a collection agency continue to report a collection account to the credit bureau after the account is sold to another collection agency?
No, once a collection agency relinquishes their claim to the account by selling it they must remove all negative trade lines related to that account from your credit reports. Hope this helps ST
Can the collection agency touch your bank account if your student loan is in default?
A collection agency can only touch a bank account if you either give them permission or they have a court order. In order to get a court order they have to go through the full legal process including trial. The Student Loan on the other hand, like the IRS, does not have to go through the legal process.
Can you have a federal garnishment if you already have a garnishment?
In the US, a defaulted student loan is turned over from the Guarantee agency to a Federally approved collection agency. This collection agency can garnish your wages. If your loans are with various lenders and turned over to multiple collection agencies after default, then I think it would be possible to have multiple garnishments, but collectively they can not be more than 15% of your salary. If more than 15% is being taken, then you should contact the Ombudsmans office at the Dept of Education. He is there to help you. If you want help consolidating your defaulted loans and stopping the garnishment, click on the link at the bottom of this text box.
If your account has gone through the hands of many collection agencies does it matter if the last agency does not report something on your credit?
No. The damage was done as soon as the debt was defaulted on. It is common to have accounts taken over by various ca's.
Can a collection agency charge interest on an account they bought and do you have to pay them since you never entered into a contract with them?
Sorry but yes they can. In the original contract there was a clause about what actions could be taken if you defaulted on the agreement and one of those actions is that the account could be turned over to a collection agency. So, even though you didn't directly enter into a contract with the collection agency you agreed to abide by the contract and the collection agency now legally owns the contract. It works the same way as when you purchase a house. At some point the original lender on a house may sell the contract and you will be paying a different lender.
Can my account be sold to another collection agency?
Yes.
Can the collection agency freeze your bank acct in Fla?
No. A collection agency can not freeze your bank account. Only a judge could do that.
