I was garnished by a debt collector. I didn't know of court ruling until garnishments started because all court papers and serve notice was sent to wrong address. I contested and went to court and came to an agreement of $250 a month payments. After it was settled in court, I continued to be garnished at 25% of my pay bi-weekly, which amounted to around $300 each time. In January I was finally able to get them to stop the garnishment. Soon after I received letter stating I owe $750 and its due to be paid in full. After multiple phone calls, I was told I need to pay in full. I asked for all the extra money they received minus the $250 back per month. They stated they would not because I was not making the monthly payments on top of the garnishment. Eventually I was told because of all the hassle they would close the account, that I no longer owed the $750, and that they would mark it paid in full. I received a letter stating the account was closed. After, I then received a notice of garnishment to start immediately for that same $750, with it being 25% of my income bi-weekly. I know they cannot do this because I have government assistance for my sons health insurance. But I also have the letter of account closure, so how can they legally garnish me? And do I have a case against them for harassment, or breaking the law with their methods and failing to adhere to the initial court ruling, and trying to garnish again after sending me a letter saying the account has been paid?
1 Answer from Attorneys
Sorry it depends upon what the actual agreement was as stated in court. So the signed documentation or recordings of what was agreed to on the record (recorded) are key to understanding your rights. Of course from a practical standpoint, the attitude of the judge overseeing the matter is also important. The letter of account closure could help you but what would have been better would have been a Satisfaction of Judgment or form that is used once a judgment has been paid in full.