Threat to garnish if I do not agree to autromatic payments

by JC
(Louisville, KY)

A collection Agency, Jacob's Law/Group costantly says that they will garnish my wages if I do not make a monthly agreement to pay by automatic drafts from my checking account.

I have paid like this a few times with them, but things are getting really tight and I can not afford it for this month. They wanted first 200, I agreed to 100, and last month I called to change it to $50. I could not pay more.

I have told them that I will pay them either by mail or using a credit card on their own website. But they said that even paying like that, it won't stop the lawyer to sue to garnish.
I do not like that they have access to my account and they control my life. Also, for each payment that goes tothe debt, they charge 18.65 as for some fee.
So if I pay 100, they are charging 118.65, or if I pay 50, the charge $68.65

So, is it legal, even if I am paying on my own, not by a automatic draft can they proceed to sue me?

Comments for Threat to garnish if I do not agree to autromatic payments

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Jul 28, 2010
Debt collector threatening garnishment
by: Mary

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

Giving a debt collector your bank account number so it can automatically debit money from the account is very dangerous because there are many instances of debt collectors who take more money than they are entitled to and when that happens, it's very difficult to get the money back. You should also never pay a debt collector with a personal check, your credit card or debit card, or with a money order. Pay instead with a bank certified check or via Western Union. Both of these options let you protect your personal and financial information from unscrupulous debt collectors and provide you with a printed record of your payments.

Given that you have already given a debt collector permission to get money automatically debited from your bank account each month, you may want to end this process by closing the account and opening a new one. Before you do however, I strongly urge you to protect yourself by consulting with a consumer law attorney in your area. Find out how to get FREE or low cost legal advice about debt collection from a consumer law attorney here.

When you talk with the attorney let him or her know that the debt collector is threatening you with garnishment and be sure the attorney knows about the fees that the debt collector is charging you. If the attorney determines that the debt collector has violated your right, the attorney may suggest that you file a lawsuit against Jacob Law/Group.

In the meantime, I suggest that you do a couple things. First, print off some copies of my Free Debt Collection Worksheet. Then every time a debt collector with the Jacob Law/Group contacts you, record the details of your conversation on the sheet. If you have grounds for a lawsuit, the information on this sheet could be very helpful to your case. Second, get more educated about your debt collection rights by purchasing a copy of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, which is available as an e-book at this site. You can read the first chapter of Debt Collection Answers online for free.

Please share what happens with your situation in the comments section for this question. We are very interested in hearing how this turns out for you, and your experience can help others who are struggling with debt collectors.

Nov 02, 2010
by: Anonymous

I found out the hard way that unless you have a payment agreement in writing they can still sue you at any time. I was making payments on one of my husbands old debts, we had agreed on a monthly amount and after making ontime payments for a few months they sued us. I had made the mistake of writing them a check every month so they had all of our bank account information. I contacted a lawyer and was told that unless we had an agreement in writing for them to accept our monthly payment there was nothing preventing them from suing. Lesson learned. Also FYI...they can not touch any income from disabily, childsupport or social security.

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