I have a credit card company (wells fargo) that after 3 months of missed payments, contacted me stating that if I did not set up a payment plan with them where they automatically take it out of my checking, their next step was to verify employment and start garnishment. I set up a payment plan and by doing so have dug myself deeper in debt by creating debt to pay debt. Robbing Peter to pay Paul so to speak.
Someone recently told me that a credit card company has to sue you for payment and win before they can actually start the garnishment process.
Is this true? Do they legally have to go through those steps before they can garnish your wages?
Any information would be greatly appreciated. (I live in the state of Oregon)
Thank you,
trixie12

The answer is yes. To obtain a writ of garnishment a credit card company has to file suit against you and win a judgement.

However, if they can prove that you owe the debt, then they will have no problem getting the judgement. And, they will tack on interest and attorney fees to the amount you will owe.