A collection agency CANNOT seize a bank account w/o following due process of law. Meaning a licensed attorney for the state in which the debtor resides, files a lawsuit, wins a judgment, obtains a writ of execution for the judgment, and then levies an account. If the bank account has been frozen/seized by order of the court, the debtor has a specified amount of time to file a claim for dismissal or exemption of funds. However,if the debtor/defendant did not respond to the summons or judgment notice,they lose by default. If a collection agency has told you they can levy/seize your account w/o due process, they have violated the FDCPA. Exceptions to automatic seizure or levy of an account are federal or state owed taxes. A child and/or spousal support order issued by the court. In some states, a "set off" clause pertaining to a contract made with the bank where the account is held.
A creditor or debt collector cannot freeze your bank account unless it has a judgment. Assuming the creditor has followed due process and obtained a judgment lien it can levy your bank account and remove funds to pay what you owe.
The agency will continue attempts to collect the amount owed plus any applicable fees. If a settlement cannot be made, the collector may decide to refer the account to a collections attorney for legal action.
Well in Canada they cannot, unless it is a joint bank account or the family member co-signed for the loan.
Paying the collection agency will clear up your account much quicker and some creditors will return the payment to you if you send it directly to them. Most creditors sign a contract with a collection agency and cannot discuss the debt with the debtor once they place it with the agency, they must refer all correspondence, communications and payments to the agency for the life of that contract.
A collection agency cannot charge-off an already charged-off account. The reporting of the STATUS of the account AS a charge-off can be reported every time they update with the credit bureaus. The 'date of status' must be the date of the ORIGINAL charge-off.
A collection agency cannot call your employer to garish your wages. In order for your wages to be garnished, you must be sued by the collection agency. And the agency must win a judgment against you.
A collection agency cannot seize a bank account period. ALL SS benefits are exempt from creditors. A collection agency cannot threaten to take your property nor do they have the power to do so. They can inform you that the account is being referred to a collection attorney who can pursue legal action. Be that as it may, your bank accounts are safe. You can inform the agency and the bank in no uncertain terms if they attempt such an action, you are prepared to sue for damages. The only way to stop collection bullies, is to play offense not defense.
Collection agencies do not and cannot freeze accounts in any state. Only the courts can do this. However, if a lender has a valid judgment against you for a bad debt, any collection agency they hire to recover it can serve your bank with an order of garnishee and attach the assets in the accounts you have there.
No a collection aggency cannot garnish a pay cheque
A collection agency cannot file a lawsuit against a debtor. The agency can refer the account to a collections attorney who is licensed to practice in the state where the debtor resides, and that attorney can file a suit against the debtor. Some collection attorneys or firms are also licensed to arbitrate accounts, which means the account is sent to the National Arbitration Board rather than the use of standard civil lawsuit procedures. Actually - a collection agency CAN sue you in court, IF the collection agency owns the account. However, you are correct, they cannot file a lawsuit against a debtor IF they are acting on behalf of the original debt owner, i.e., Sears, JC Pennys, etc. Most collection agencies, who actually OWN the debt account, purchase these things at very small costs ... as the original folks have written it off their books. Therefore, if they do take you to court, most likely, it will be small claims court... Debt collection, inlight of credit cards, etc., is actually a CIVIL matter and NOT a criminal matter.
When your account is turned over to a collection agency all the infornmation goes with it. In other words, whatever you put on the original application for the card. Home and work #s, home address, name and address of employer, income, etc. The collection agency does just that collects (or tries to). They cannot sue you without the consent of the original creditor. If that happens, your account is referred to an attorney who specializes in collection. Lenders do not want to sue. It is time consuming and expensive and the majority of suits are uncollectable. They are almost always willing to negotiate terms you can afford. Know your rights as a consumer and stand up for them.
Assuming you mean "pay" instead of "pat," the answer is no. However, if the debt is yours - you can be sued for it. And if the collection agency wins, you can have your wages garnished or your checking account. Keep in mind that each state has a different statute of limitations (SOL) for debt, and collection agencies often try to collect on debt that is past the SOL. Once it is past the SOL, you cannot be sued for it.
If the person has made an agreement to render payment and then defaults, the agency will probably initiate legal proceedings. The majority of CA's are not attorney's and therefore cannot themselves enter into litigation. They usually refer the account to a collection attorney who will then file a lawsuit against the debtor. The lawsuit must be filed in the debtor's state of residency and the state statutes will apply to all legal procedures. There are however collection agencies/law firms who now have the ability to file for arbirtration, the debtor/consumer should be very cautious in either case and if possible seek legal counsel. If the agency feels the debtor is "judgment proof" they may return the account to the original creditor who will then decide to resubmit for collection or close the account as uncollectible debt. macky83@juno.com