Can the collector take $$ from the bank?
I have a loan that was recently sent to a collection agency. The loan company agreed to go into settlement and pay only a small fee but I did not have the money. When I file taxes, the company takes away my state tax refund. I am afraid to make a bank account because i think that they collection agency will take all of my money. It it legal for them to do that?
Reply from DebtCollectionAnswers.com:
Did the company already intercept your state income tax refund or are they just threatening to do so? Do they have a court judgment against you? Typically, a collection agency can't just take your tax refund or your bank account without first going to court and getting a judgment, though there are a few types of debts where they can go after assets without first getting a judgment.
Have you checked your credit reports to see if there is a judgment listed? You can get your credit reports free once a year at AnnualCreditReport.com.
Click here to post comments
Return to Debt Collection Questions.
Learn how debt collection laws can help you!
This website does not provide legal advice.
All information is for educational purposes only.
Copyright 2007 - 2016 by Mary Reed and Gerri Detweiler.
All rights reserved.