Refusal to Pay, Debt Collection Agency and Bank Account Information
I really need help fast and I don't know what to do; I'm hoping you can answer a question for me. I only have one more day left to make this decision and I'm running in circles trying to get it resolved. For the moment I need to know if a "Law Firm Engaged in Debt collection" can demand my checking account number, and if so, will the bank freeze my account? They were granted a judgement against me because again, I could not get an answer as to how I was to respond to that. I paid a debt relief company to help me but now that I really need them, I' can't reach them. I've been trying for almost two weeks, and just sit on hold, until I give up, sometimes more than hour. I live in Pennsylvania.
Can a debt collector demand my checking account number and freeze my bank account?
—Help in PA
Short answer
State law limits how much a judgment creditor can take from your bank account, caps how heavily your wages can be garnished, and protects some of your personal property from seizure.
Key points on this page
- State law limits what amount of money can be levied or taken from your bank account to pay a judgment
- State law protects you from heavy wage garnishment
- State law limits a debt collector seizing some of your personal property to satisfy a judgment
- When asking about your own situation, include the creditor or debt buyer, the collection agency if different, your state, and whether there is a judgment or active court case
The above debt collection question and below comments with additional responses are from an email exchange with a reader yesterday.
State law limits what amount of money can be levied or taken from your bank account in order to pay a judgment. State law further protects you from heavy wage garnishment, and from a debt collector seizing some of your personal stuff in order to satisfy a judgment.
Anyone with a related question can post it in the comment for feedback. Be specific with what you have going on. It helps when you include:
- The name of the credit or debt buyer involved.
- The name of the collection agency involved if different than above.
- The state you live in.
- If there is a judgment or an active court case.
- What your goals are for resolving the debt.
Including those details (use an anonymous screen name if you like), often helps me offer more detailed feedback to readers.
If you want to talk offline you can reach me at 800-939-8357, choose option 2.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
The name of the credit or debt buyer involved.
Credit Acceptance Corporation
The name of the collection agency involved if different than above.
Represented by Law Offices of Frederic I, Weinberg & Associates
The state you live in.
Pennsylvania
If there is a judgment or an active court case.
There is a judgement against me, for $6,612.
What your goals are for resolving the debt.
I would love to settle the debt, but I don’t know what my next steps are. I’m worried about them garnishing my bank account. I live pretty much paycheck to paycheck as it is, if they froze my account I don’t know what I would do to live. I don’t know if I should contact them to work out a payment plan, or if they’ll just take my account info and freeze my account. I am leaning toward bankruptcy, but obviously, that’ll take time, and I’m afraid any money I would be able to put toward filing would be put on hold. I’ve heard horror stories in PA where people woke up one day to find their account was put on hold without notice. I’ve never given this place my account information, do they legally have to tell you they’re freezing the account, or can they just do it?
You can indeed wake up with funds frozen in your bank account without any warning. You can prevent that by working out a settlement or a payment arrangement that they agree to.
How old is the judgment?
Are you in a position to fund a settlement offer for half or more of what is owed? If not, when can you be ready?
The opposite is true about filing bankruptcy. The moment you file all collections of any type must stop in its tracks. That includes judgments. The process to discharge in a 7, or repayment in a 13, does require a formal process that takes varying amounts of time. But the protection from creditors is immediate.
Good Afternoon Michael,
Thank you so much for all of the help that you offer to all of us. Here is my question, I would really appreciate it if you could take a moment to reply. I live in PA and recently discovered a medical bill in the amount of $134 on my credit report, when I called the collection agency, CBJ Credit Recovery to pay them (the full amount) they said they couldn’t take my payment because it’s been too long, 6 years and I would have to wait another year for the account to come off my report. I don’t understand this. When I’m willing to pay. Is this correct? Do I have any options? I don’t want to wait another year. Mind you, I never knew it was there previously.
Thank you!
Corie
On any given day it is more than a little odd to have a debt collector refuse money. My guess is that the debt collection agency does not have the account so could not take your money. The debt collector did a poor job of telling you what the situation is and what to do next.
I see your options as:
1. Contact the original service provider and find out the status of the account in their system and follow the trail of crumbs from there.
2. Dispute the entry from CBJ Credit Recovery off your credit report.
If I am right about them not be associated with the account any longer, your dispute will likely result in the credit report removal.
Let me know what happens with your efforts.
Located in PA. I hve a judgement from Capital One. Attorney fir is Weingberg. That have from my bank account. By law the must return 300 to me. 900 will go to the attorney debt collector. How long can they freeze my account.? What no happens next? I can not believe we life in a county that allows this to happen to people, leaving them with no money to buy food, pay mortgage or utilities etc. Our economy crisis, job loss etc put me and many others in this position. They have made me feel like a criminal
Call and ask your bank when you will be able to deposit money in the account again without them being able to levy the money.
If the amount they took does not satisfy the judgment they can hit your bank again later. How much is the total amount owed on the judgment?
If you still owe a sizable amount you will want to look at banking and bill pay alternatives until you resolve the judgment.
Sorry for the typos! The balance is now around 2300.
The attorney said after this phase they will work with me. So we ll see. When I ask the bank when the freeze will be lifted they rudely stated when the courts tell them to lift it. What other alternatives are there? They make me feel like a criminal. People fall on hard times and this us how they are helped?
It can take a few weeks for the process to take its course. Many collection law firms are going to work with you to repay the rest of what you owe after this. Your wages are protected in PA, so that often leaves bank accounts as the most immediate way to get paid. It is, unfortunately, a normal element of debt collections.
If it were me, I would look at ways to offer them a lump sum settlement for less than what is left owing. But if that is not a possibility, making a scheduled monthly payment arrangement with them will allow you to continue to bank as you normally would.
Hello – I received on 2/26/16 court papers stating that Weltman Weinberg and Reis (Discover) received a judgment against me on 1-29-16 and that are garnishing my Huntington bank account in excess of $425.00 – I called Weltman and of course the attorney that is handling my account was out and the lady that I spoke with said did they garnish your account? I said I didn’t think so I just got the paperwork that day, so I called my bank and that day 2/26/16 they did, and only left $425 – they took $1072 plus a processing fee of $75. The bank said that the received the garnishment that day and they took the $1072 and also the $75 was Weltman court costs. My question is can they do this over and over until the entire amout owed is satisfied? I still owe Discover roughly a additional $1200 -I will try to set up payments on the remainder however, I don’t want them to do this again next week?? Should I close that account? once last question, how do they get account information? I live in ohio.
Your bank account is at risk for further levies until the judgment is satisfied unless you qualify for exemptions from levy in your state. You do have a decent chance of setting up a payment plan on the remainder that is owed so call and check to see what they are willing to do.
They may not have had your bank account information. Debt collection attorneys will get an order from the court to allow the bank levy and then submit that to major banks in your state, or in your area. They can hit their mark that way.
Hi, my partner’s car was repossessed due to being behind in payments. They took the car on Feb 16 and we received a letter dated Feb 18 which states the 15 day law. The problem is that he can’t get any answers from anyone when he calls. He’ll call multiple times a day, has left multiple voicemails on the attorney’s phone who he is being directed to speak with and whose name is on this letter. The attorney has not called back. What should we do? Should we hire an attorney? What options do we have if no one will speak to him. We hope to reinstate the loan. Thanks for any help. also, we’re in pittsburgh, pa. thank you!
Who is the loan through, or who is servicing it?
Hi my bank account was frozen due to in unpaid account that I had over ten years ago I have slowly been trying to rebuild my credit and must admit that I haven’t made the best choices regarding my credit in the past the number I was given from the bank isn’t a working number and no one can tell me what to do in this situation except wait I recently moved from one state to anothe and rent and bills is a must especially rent. I have a lot of debt but no new debt in the past six years not sure what to do about this
Ask your bank for a copy of the order from the court. Look up your name in that courts records and post an update with the details about the judgment you find there.
Name of plaintiff.
Name of collection law firm that handled the case.
Judgment amount.
What state you are in.
I can offer more helpful feedback when you post those details.
Hi Michael, you give great advice–I hope you can help me! My husband was having his wages garnished after a default judgment was filed years ago from Midland Funding/Pressler & Pressler here in NJ. Though the debt was never verified, they forged his signature on a certified mail form which is how the default judgment was entered (he never received notice to appear). Anyway, his office received a letter from the Superior Court Officer to whom he was paying the wage garnishments “to please stop remitting and refund any monies you have on hand to the defendant” along with a copy of the Court Officer’s notice to the Special Civil Part Clerk, informing her, “Please note the above mentioned wage garnishment has been closed in our office. Please stop the deductions.” Any wage garnishments his office had sent were returned back, the checks uncashed–this was back in Feb. 2012. Fast forward to this week–Pressler & Pressler sends a notice to his office: “Inquiry is made as to your compliance with the Court Order for the Wage Execution served upon your firm…etc.” and a bunch of questions about the last remittance, balance due, etc. This is not the first time they have started and stopped, and we fear they are trying to add on more interest each time they do this? Our biggest fear is that this will destroy his newly repaired credit score. What can we do? Please help!
I would contact an experienced debt collection defense attorney in New Jersey and get their feedback. Something is wonky with your file in the courts. Talk to them about the service of process signature too.
Post the name of a nearby large city and I can email you contact details to any attorneys I know of in the area that have the experience you need (few lawyers specialize in debt defense).
Hi, thank you so much for your prompt response! If you know of anyone in Monmouth County, NJ, near Freehold, that would great. Many, many thanks!!
I am a resident of South Carolina, a graduate student on a stipend. Defaulted on 15K of student loans which my cosigner said was paid off to Citibank but cannot verify since she has passed away now. Discover bank claims to have purchased that account and claims it was never paid off and is suing me, using a collection agency. I have a bank account where my direct deposit funds go from my stipend. Apart from that, I rent, have an old car and my only asset is that direct deposit account.
There is no mention of Discover Student Loans in my credit report and I do have a line in there showing the Citibank account with a balance of 0 but open.
Can a judgment be used to levy my bank account despite the fact that it only holds direct deposit funds from my wages which are exempt from garnishment by SC law? What can I do to protect myself in case I lose the case?
If you do not claim a homestead exemption in South Carolina you do have a cash exemption from judgment creditors, and up to several thousand dollars. I would run your entire scenario, especially the part about this have potentially already been paid, by an experienced ebt collection defense attorney in SC. I can email you contact details to some that I know of if you like?
Sure that would be great. I don’t have a lot of money, obviously, so an inexpensive one would be ideal
What is the name of a large city nearest you?
I have a judgement against me in New York. I set up a payment plan in 2014 and was paying it then fell 4 months behind. They sent me a letter and I went to the lawyer’s office and set up another payment plan. Since I am actively paying, my tax return isn’t at risk for interception is it? Also, can they place a levy on my bank account after my refund is deposited? I know if it’s under a certain amount they can’t freeze it but I’m expecting at least $4k back. Please help!
Is your agreement with the collection firm in writing?
How long have your monthly payments been back on track?
Roughly how much is still owed on the judgment?
I recently found out that my bank account has a levy on it, due to a judgement from the Weltman and Reis group ( Discover card). I was aware of the judgement, but was never served any papers regarding the levy, nor have I received anything regarding the interrogatories. Is this legal? And can you recommend any decent lawyers in the Allentown , Bethlehem, Pa area? Thanks
How long ago were you sued? What is the amount of the judgment?
I am sending you email to an experienced debt defense attorney you can call and consult with.
My bank recently took 1200 from my personal bank account because I am 180 days behind on my business credit card payment.that was linked to my business checking account, not my personal checking account, is this legal?.
What is the name of the bank?
Was your business a dba or sole proprietor? In not, what type of structure are you set up with?
Bank of America, web based business sole proprietor
The sole proprietor designation will often be why you are not protected from what happened with your accounts. I cover business accounts in more detail here: https://consumerrecoverynetwork.com/question/settle-business-credit-cards-loans-personal-guarantee/
How much is the balance still owed on your BofA card?
My bank account was frozen on 11/30/15 by Federated Law Group for a debt totaling $6000. I called them immediately and was able to set up a payment plan for $1000 per month. I opened a new checking account and sent them a certified check for the initial payment, which they will receive today (12/3). The agreement states that they will lift the levy after this initial payment is received. Once they give this information to the courts, how long does it typically take for the account to be made available again? Thank you for your help!
The time it can take to release your account can vary. I have seen that process take a couple of weeks, and in some instances a couple days.
You may want to ask a seasoned customer service manager with your bank what they have seen in similar situations.
Thank for the information. The levy was released yesterday, but I’m still showing 3 charges that went to “legal order, LTS.” These charges total more than what was owed to the collection company. Are these funds just placed on hold by the bank, placed in a escrow account, or sent directly to the creditor? I have tried contacting the bank, but no one seems to be able to give me a straight answer. If these funds were sent directly to the creditor, then they now have over $1500 more than what I owed them. Thanks again!
I just had a levy on my and my husbands checking account. It was from Zwicker and Associates PC out of Andover, MA on behalf of American Express/Centurion Bank. In May 2014, I had a lawyer that got a legal agreement to go through our chancery court here in Knoxville, TN with them agreeing that they would accept $250 per month until the balance of $26,935.93 is paid to them. I had been diligent in paying them although there were two months the payment was about 7 to 10 days late and all of a sudden this levy is placed on my checking, and daughters savings accounts draining all of it, $3,007.91! I can’t get my lawyer to call me back and I only have until November 18 to get a release of levy. Questions, how do I and can I get a release of levy? and they have sent a form for execution and garnishment but I don’t work outside the home and have not income of my own, so what can they take or do moving forward? When I call Zwicker ad Asssociates they refuse to talk to me and say they will only talk to my lawyer that handled the original agreement that went through the court in May 2014, the one I can’t get to return my calls! HELP! We really need some of what has been levyed to pay our mortgage, utilities and car payment. I can’t believe they would do this over payments being a few days late twice! Also how do I keep them from doing this again? If they will reach a new agreement with me on repayment or settle on a set amount and consider it paid or charged off for that amount, can they levy my checking again for no reason? What proof do they have to show the court to get the judgement in the first place? I didn’t get a letter or anything saying this was going to happen, just went to get gas last Monday and found out my account had been drained dry. PLEASE ANY HELP IS APPRECIATED.
The bank freeze of your money is due to the judgment they have. You can protect up to 10k of cash in a bank account in Tennessee, but that exemption total has to apply to your vehicle and household goods exemption too.
You may want to contact the court directly and find out what you can file yourself in order to contest the levy, or get a full or partial release. If your attorney will not return your calls, and you want legal advice, you may have to call another. If you post the name of a nearby large city I can likely email you contact details to any in the area that I know have the experience you need.
The proof they needed to show the court in order to get the judgment in the first place is an issue that has likely passed you by. The time to challenge that was prior to the judgment being entered, or any consent or stipulation you may have entered.
You can settle with a debt collector like Zwicker, even when they have a judgment and freeze your bank accounts. You will want a lump sum available, and will realistically want to target 50% of today’s balance as a floor.
That is one way to keep this from happening.
Your bank accounts are at risk moving forward if your name is on them. Taking your name off of the accounts would prevent this from happening.
You could look into chapter 7 bankruptcy as a means to legally put a stop to any other collections for this account, where you would also legally eliminate the judgment balance.
Hello-
My husband & I were married in July of this year. We signed a prenup & had it notarized with clauses that any debt or assets prior to the marriage would remain our own and that we would determine future items.
I added him to my checking account once we were married. Also- my income is significantly more than his and joint bills are in my name because he moved into the home that I owned before the marriage. I guess you could say that his joining my account was more of convenience but now I learned was not.
Less than 4 months into our marriage, a hold was placed on money in our joint checking for a large sum of money (over $6,000) based on a garnishment /lien for Discover credit card that my husband owed from over 6 or 7 years ago when he lived in another state. I only learned from calling my bank what it was for.
We have not received anything from Discover, a lawyer or the courts. But I have confirmed it garnishment summons against our joint account, though he is the sole debtor for this old credit card. I’m shocked and see so many things wrong.
How can they hold money from our joint account-when actually none of the debt is mine? And none of the money in the account belongs to my husband based on our prenup and the fact he barely makes enough money to cover his bills? The money in the account is mine and is needed for my mortgage and other bills, including my son’s tuition! Further, isn’t this beyond the statute of limitations? Shouldn’t he have been served papers or something to be put on notice of this and that there was a judgment?
What are our options at this point since the bank is holding my money? Are there grounds for exempt this money from garnishment/lien considering it is not his money in the joint account and I’m not responsible for the debt? {I do have substantial evidence of my direct deposits from my employer that substantiate most of the balance and the fact I held the account for 15 years before marriage. Further the balance had the noted amount before our marriage and we had a prenup.]
Should we attempt to settle or only after addressing the garnishment first? I fear that they may be less likely considering my assets have been brought into the picture but I have many recurring bills that need to be paid with that money.
Thank you for any assistance and information. Melissa (from Virginia)
The checking account is fair game when your husbands name and social became attached to it. The prenup will not prevent that bank account levy, and likely would not allow you any recourse against Discover. You could be wasting money and energy trying to get the frozen money back.
You can still settle with Discover, but will likely have to deal with the attorney handling the case.
How much did the bank take from your account?
How much was the judgment for and when was it entered in the court?
They have an administrative hold on over $6,000.
I don’t know when a judgment was filed. We have never received anything. I only know that the administrative hold was placed based on a garnishment /lien about a week ago. but I don’t know about anything else. The information I have received came from the bank then from going to the courthouse. My husband has never been served and the address on the garnishment is not correct,
I’m surprised that you say I’m wasting time and effort regarding the hold. My husband has only been on my account for a few months and I have support that the majority of the deposits are mine. The debt is not mine and existed before marriage.
Melissa
I would encourage you to run the whole thing by an experienced debt collection defense attorney. Post the name of a larger city near you and I will email contact details to any I know of in the area that offer a no cost consult. My main concern is that he was sued and never knew of any of this. Sometimes the judgment can be unwound in this type of situation.
With your husband on the account the money on deposit is seen as his property. Talk to the attorney about this too.
Michael- Thank you for your responsiveness. The closest big city is Richmond, Virginia, approximately 60 miles. Washington, DC is also about the same distance but it may be best to stick with a lawyer in Virginia but you may know best if there is a difference.
My husband lived with me close to a year before marriage and I can assure you that we have never received any type of summons or legal notice to the home. In fact, if I had known he had this issue before I would have ensured he took care of it. I have stellar credit and a job position that requires such. I would not have risked that with such actions being taken on my husband or my soon to be husband if that were the date of such judgment.
I don’t know the details of it got to this point–but based on discussion with my husband it appears this relates to a credit card from approx. 6-7 years ago when he lived in North Carolina and was unemployed. Since then he moved several times for employment and fast forward.
I don’t believe in foregoing what is rightfully your debt or obligation, but I firmly believe freezing my assets in this situation is completely wrong. Melissa
I found one in Richmond and one covering VA and DC, both with the experience you want. I sent full contact information to you in an email. Please let me know how things progress.
Hello Michael, I have a judgment against me from New Jersey which included bank levy & wage garnishment. I moved to Pennsylvania four years ago. I understand that my wages can’t be garnished in Pennsylvania. My question is can a bank account be levied if I open one here? And will it make a difference if I use a bank that only has branches in Pennsylvania as opposed to a national chain? I mean could a New Jersey levy be enforced on a Pennsylvania bank? Any insight you can offer works be appreciated. Thank you.
Your bank account can be levied on a judgment from another state. It can make a big difference if the bank is only in your local state and cannot be served in NJ, but not always.
Look for a way to resolve the judgment in the future if possible.
Hey. I had a judgment issued in 2003 two months ago I was sent a writ to renew it this week they sent a discovery for me to answer should I answer the questions about my bank accounts and job info its with discover the lawyer is Pressler and I live in Philadelphia PA.
You can be compelled to provide answers to asset discovery related to your judgment. It is best to talk about your rights with an experienced debt collection defense attorney in PA.
What is your goal for this account? Can you afford to settle it?
I live in phila, pa. A credit card company filed a judgement for $5,800. Today a freeze was put on me checking account. The only money I had was my pay check.
What can I do? Is it too late to make payment arrangements? The the reason for the no pay to creditor was for personal family issues that needed payments to go for legal fees in this matter.
Hope to here back.
Thanks
You can still set up a payment plan. If you get them to agree, make sure to get the deal in writing.
Who is it that got the judgment and what is the name of the attorney collection firm?
Hi, I live in Pa and had a debt buying company sue me at the magisterial district justice for a balance on a credit card that was written off. I went to the hearing and the judge was very familiar with the debt buyer’s attorney and was very short with me, at some times even rude. I couldn’t afford an attorney for this and had studied up on debt buying companies and I told the judge that I researched that if the debt buyer didnt have the original service agreement that the suit could be dropped. The debt buyer didn’t have my original service agreement and the judge still ordered a judgment on me for $1500. I don’t own a house but own a 13 yr old vehicle and have a bank account. Can they seize my car and bank account?
Pennsylvania protects a total of $300.00 for all of your personal stuff. That is supposed to cover the value of your car, all household items, and that maximum amount of cash in your bank account.
Yes, your bank and other items are at risk.
What was the debt for originally?
Who was the debt buyer involved?
the debt was a sears credit card and the debt buyer is Midland funding llc. and thank you for responding so quickly.
Sometimes the most cost effective path is to settle the debt. How much money can you pull together in the next few weeks in order to negotiate and fund a settlement with Midland Funding?
that’s the problem, I’m barely getting by, paycheck to paycheck because I was off work with severe illness for 22 months which is why I couldn’t pay the bill. I had insurance on the credit card and when I was hospitalized multiple times they made the payment so when I reported losing my job because of fmla depleted, sears said the insurance would cover it. I told the judge this but it didnt matter and I don’t have the paperwork verifying this because of the length of time that’s passed . I can’t get anything from sears since the debt buyer owns the account. I’ve only been back working since January and at a much lower salary than previously so I don’thave money. also if I could have made an agreement with the debt buyer, what ‘s stops them from trying to buy any other delinquent debt I have. I don’t have many and this is the first time I haven’t paid a debt, also this was the third time I.opened a sears account and previously paid those off because I was financially able to, so this isn’t a situation I’ve been in before.
Midland Funding is not able to go out and target accounts of yours as specific targets to purchase from others. Debt buying does not work like that.
Have you considered filing a CFPB complaint about the credit card protection plans sold to you by sears or Citibank? Citi just paid a ginormous fine a week ago, and partially for the add on products like credit card payment protection plans.
If you cannot get traction with the CFPB complaint than you are likely looking at the least costly path being a settlement with Midland. If that is the case, try to put together about half of the judgment balance as quickly as possible before you call to negotiate the deal.
Hi Michael,
The name of an attorney would be great…my real defense is stupidity.
Pay check direct deposits-bank with frozen accounts will not allow me to close the accounts or deflect any deposits.
My employer thinks it is too late to stop/hard copy my paycheck this time.
Support I was able to put on hold.
I called the creditor again-today the man I spoke to is not in for a few hours-“late day.”
One additional question-will the creditor allow me to access any funds to buy food, gas etc.? I have about $8 in cash-I never carried a lot.
I can not thank you enough for your time.
The creditor is not going to want to reverse any funds held, and the bank will not be of real help here.
Talk to Greg, the attorney I sent you contact details for, and find out what your options are. If you are in eastern PA he may refer you to someone closer to you, but he offers a no cost initial consult, so take him up on that.
Michael,
original-Maryland National then sold to CACH LLC
law firm- R. Calef and Assoociates-Pa
Is there any way in Pa. to file motion to vacate?
TY and I appreciate all of your help. I will get back to you.
You can try to get the judgment vacated, but the underlying reason for trying to do that should be solid. I can email you contact details to an attorney with the experience you need if you like?