I had a student loan for an online course. After only 3 weeks of attending it, my computer crashed and I had three small children to take care of. I called the school and told them I could not complete the course because I could not get another computer. I was told that they would make a call and I would not be charged for anything other than some administrative costs. I also wrote a letter but it went unanswered. After I went to work for CVS, they started garnishing my wages. I was shocked because I had been paying even though I thought it was unjust! But CVS keeps taking 15 percent of my meagar salary. NCO never had a hearing. I understand that they do not have to get a court judgement but they do have to hold a hearing which they never did. Can they be sued for this? And has anyone out there been through the same thing?

No student loans can garnish wages without court hearings, if you do not owe it, you can file for a hearing to make them prove their case. They merely file the paper work with the court and a judge signs it. You are not there.

There is nothing to sue them for. Often garnishments are at 25 percent, so 15 is a reasonable amount.

... I understand that they do not have to get a court judgement but ...

Where did you get that idea? Yes they do.

It could be that they alleged service of process on you and thus got a default judgment.