Legal Question in Credit and Debt Law in Missouri

If it was court ordered to pay back a school loan in the amount of 4995.00 and then they sale the court order to another company is it legal for them to charge you more money. like four times the amount and is it legal for them to garnish your wages. They have already taken like 11,000 from me and the last time I could get some one to talk to me they said I still owed an additional 12,000. Now when I call they put me on hold and transfer me to a answering machine. everytime


Asked on 2/27/10, 6:49 am

2 Answers from Attorneys

Anthony Smith LawSmith

Most, if not all, student loan agreements include provisions for the debtor (student) to pay the lender's attorney and collectionm costs as well as the accruing interest on the debt. Many debtor's are shocked to see how much that can add to theri debt. Sadly, some lender's over garnish. It is not yoru employer's place to question the accurancy of the amount alleged by teh person seeking the garnihsment. It is your job. You will want to look at the judgement that is the source of the wage garnishment. If the amounts being paid to the judgment creditor ( the apparent buyer of the student loan note) are beyond waht was to be withhheld, then you can have the garnishment stopped and possibly get back whatever was overpaid. Start with the judgment and then look at the most recent wage garnishment they filed. If things do not look right, contact an attorney in your area to explain your options to stop and reverse the process. many offer a free or low cost initial consultation.

Good luck

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Answered on 3/04/10, 12:03 pm
Michael R. Nack Michael R. Nack, Attorney at Law

It certainly appears that you need to consult with an attorney. The attorney will charge you for time and effort expended on yoru behalf, but I'm confident that it will be well worth the costs to you in the long run. Good luck!

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Answered on 3/04/10, 6:07 pm


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