[missybella]

I have 2 debts with the same company - payments were taken out of my bank account each month - I had the automatic deductions stopped as I have been struggleing with my daily living, rent, electric, medications, etc. I am 75 and on Social Security only. This occurred approximately 2 months ago. I tried to negotiate with them but they wanted total payment up front. It has evidently been turned over to a collection agency. I received a call on Saturday 9/11/10 at approximately 10:45 a.m. stating that my social security ending in the last four digits would have a judgment placed on it demanding I call them by 12 p.m. They did not identify themselves, but did say my name and the last four digits of my social were correct. I traced the number and found they were a collection agency located in Chicago. I live in North Carolina. My only source of income is my social security which I have a direct deposit for. Can they put a levy or freeze my bank account? And where would the judgment come from - Chicago or the town I live in in North Carolina? Is it up to the bank to refuse the judgment since I'm on Social Security. My electric and car insurance are automatic deductions out of my account. I hope someone can answer these questions for me. Thank you.

[tickle]

No they can't take your social security payment. This is a scare tactic by them, missybella. I would suggest though you take it off direct deposit and have the payment sent directly to your home. Don't call them.

Tick

[Fr_Chuck]

They can freeze your bank account, since it could have other funds in it. The bank will not "know" that it is only from social security. So after it is frozen and you have no money will you have to go to court to get any freeze released.

Also to get a garnishment they first have to get an judgement, you have to be served and have a chance to appear to defend yourself.

Then only after they get a judgement can they get a garnishment

[ScottGem]

They would have to file suit where you live.

You may be able to forestall an attachment of your account by delivering to your bank a letter stating that the only funds deposited in the account is from protected sources. Include copies of statements showing the only deposits as the SS direct deposits.

[missybella]

Thanks to all of you for your information. Does anyone know how long it generally takes to put a levy on a bank account? And does this first go through the courts and then the sheriff? I do have papers from the local Social Security with information I would need. I have been 13 years at this bank and they know me, but I know they have to deal with what is given them by law. I don't have a car - fortunately, the bank is only 3 blocks from me. I plan on taking what little funds I have in the bank out tomorrow and hopefully can put it back in if the levy is stopped. If possible, I want to keep my bank account open. Of course it bothers me not knowing who "they" are, since they did not identify themselves on the call. I am keeping that voicemail in case I need it for the future. Thanks again for your help.

[Fr_Chuck]

They are suppose to serve you papers of a court action to get a judgement. They can not garnish your bank without a judgement, After a judgement it is a matter of a few days or a week to get a garnishment served on a bank.

Also remember if this is a larger "chain" bank, the garnishent is often done at a national center and local people will have no idea about it until you tell them

[missybella]

AN UPDATE:
I went to the bank this morning to talk to my relationship banker. I spent at least 1-1/2 hours with her. I had her listen to the phone call I had received and she said it could mean that they were going to put a judgment against my social number on my credit report or that they were going to put a judgment against my banking account. The collection agency does not have information as far as my bank account number is, but I don't think
That will stop them. My relationship banker called their garnishment department and I found out this is the way it works: The collection agency can file a judgment against my account through the court house and the sheriff then brings the information to the bank. Then the levy is placed on the account. She said by law that is what they have to do. If a person is on Social Security, they have no right to do it, but they will anyway. It is AFTER they have frozen your account that you receive your notice about the judgment. Then you have to get copies of your bank statements for the last 3 months and send them to the collection agency, to prove the only deposits you have had in your account are valid direct deposits from social security. If you take money out and put some back in, they will question where that money came from. After reviewing your bank statements, they will release the levy. (Maybe). The burden of proof is all on me. I told her, that in no way protects a person that is on Social Security only. She believes it does - that they will release the levy as soon as they realize they could not take money out of a Social Security account. But I believe they will take their time releasing the levy. But... I have already contacted Social Security and requested I get my mail at my home address. If I didn't do this and they froze my account, I would have no money to pay my rent or any other bills. I took most of my money out of my account except for the two automatic deductions I have. I am calling my electric company and ask if I can change to paying by MO instead of auto deduction until further notice.

I did receive another call from that collection again today, same person - stating the same message with the exception of adding that she has called me numerous times (untrue) asking that I or my attorney return her calls. They do like to lie, don't they?

Sounds like collections can do what they want, when they want. I am wondering if they take any money out of your account, if they have to pay it back to you because they got it fraudulently. I really don't like the idea of sending my bank statements to a collection agency - never know who will see them - especially to an out of state agency. But according to my bank, that is the way it is done.

[ScottGem]

Your relationship manager either gave you slightly incorrect info or maybe you misunderstood. First, before they can get a judgment they are required to file suit and that means you are supposed to be issued a summons giving you a chance to answer. You are entitled to a hearing. At the hearing you can present to the judge your evidence that your only income is from Social Security. This may forestall the court issuing an attachment even if they get a judgment.

The problem here is if you stop the direct deposit you are losing your proof.

After they get a judgment they then have to get a writ of execution to levy your bank account. This is them served on your bank. You will get no notice of this until after the writ is served. If the bank will not accept a letter from you as I outlined earlier, then there is a risk of your account being levied.

If you account is frozen as a result of a writ, you need to go to the court that issued the writ to have it vacated, not the creditor.

[jazzit]

Was awarded judgement. Once they get your checking and Im not sure how but they will wait until they know you have enough money in your account to make it worth while before they pounce (so 50.oo in account is more than likely safe).Sure enough it had been a while and she had not heard from them... she got tax return, paycheck then they got her. They took everything down to o (which they are not suppose to do - every state has different amounts). She had to go to court-house file a paper and wait for hearing to prove some was social security. Note *banks and courts charge a fee for this even if you get money back, hers was around 50 and again every state is differant* Ok the collecter kept stalling her court hearing so had to wait couple weeks no money. Day of court had to bring all paperwork but because of mixed funds they got to keep most of it. Her mistake was mixing funds in Bank Account. Here is info on exempt bank accounts from the Social Security Website and you can do Online. This is where her money is now however she did leave 50.oo in her old bank account just since she had for so long wanted to keep open. Also if you don't want to keep in a Bank Account another option is to have your money deposited on a debit card (no way for a collector to get) then pay your bills from that and this is also offered on the website. So the worst a collector can do is 1.Take all your money but only if the can get it 2. Garnish wages but you have to be notified first and only one collector at a time can do this so if you fell on hard times and a lot are after you they have to wait and if your low income the judge will take in consideration. 3. Put lien on house but most states you are protected with your homestead 4. Take you car if paid off and worth something so put title in another name 5. Mess with your credit but everything has a statue.