School Money

by Carol
(Denver, CO USA)

My daughter has her school money deposited into her bank account. A credit agency came in and took all of the money in her bank account and now she is unable to pay for the classes that she is taking this quarter can they do that.

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Apr 07, 2010
 Money for School Seized From Bank account
by: Mary

Thanks for submitting your debt collection question on our Q&A page.

In order for a creditor or debt collector to have taken the money in your daughter's bank account the creditor or debt collector would have had to sue your daughter for the money she owed, won the lawsuit and been awarded a judgment for a certain against your daughter. The judgment would have given the creditor or debt collector the right to seize the bank account funds.

Do you know if your daughter was aware of the lawsuit? By law, she must be served with a summons, which is an official notice of the lawsuit. It also indicates the date, time and place of the hearing related to the lawsuit. There have been many instances of debt collectors knowingly working with process servers who never formally deliver a summons to a consumer who has been sued. That way, the consumer knows nothing about the lawsuit, does not show up in court to defend him/herself, and the debt collector automatically wins its lawsuit and gets a default judgment against the consumer.

The debt collector would also win a default judgment against your daughter if she was in fact formally notified of the lawsuit by being served with a summons, but decided not to go to court to defend herself.

If you daughter was never formally served with a summons, then you should contact a consumer law attorney in Colorado because the debt collector who sued your daughter violated her legal rights. You can find such an attorney at NACA.net.

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