Legal Question in Credit and Debt Law in Texas

A few days ago, we get a threatening letter from TG saying we owe them 25K. We then find out one of her original loans for 6K with Bank of America was sold to ACS, who changed the amount to 12K, who then sold it to TG, who now says we owe 25K. TG is threating to garnish 60 percent of her income if we don't enter into a payment plan to pay 25K on a loan that should only be 6K. They said we have until August 22nd, but we can't afford to have her income garnished, she is the sole provider of myself and our four children and we don't want to enter a payment agreement for money we didnt borrow.

Is this legal? Is it common? What can we do?


Asked on 7/23/13, 7:57 am

1 Answer from Attorneys

If you don't make some kind of payment arrangement then the wage garnishment will be inevitable.

I would be interested to know how the amounts increased. If payments were not made on the loans for a long time then it is possible that the late fees and compounding interest have substantially increased the amount owed beyond 6K, although I'm not sure how you get as high as 25K unless it has been decades since a payment was made.

Your wife should speak with a lawyer that handles consumer debts. You can contact the Texas Bar Association to request a referral in your area.

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Answered on 7/23/13, 12:45 pm


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