Wage Garnishment threats (medical bill)

[elegyus]

I have a medical bill that has been sent to collection. I was recently approved for an eighty percent discount. Leaving me with only 1200 left to be paid. Tonight I was contacted by the CA, stating that I owe this amount. I told them what I could afford to pay each month. They refused. I said I would send in the payment anyway. She then proceeded to tell me that my account may be submitted for wage garnishment as soon as tomorrow, the amount would increase due to fee incurred, and be submitted to my emPloyer. There have been numerous "threats" of wage garnishment despite monthly payments. On top of that, I have been contacted at work repeatedly, despite noting on my account that I cannot be contacted this way. I thought the CA could not do any of this without first taking me to court. What are my options?

[Lexus]

They can’t garnish your wages without obtaining a court order. For getting a court order for garnishing wages they have to file a suit against you, they have to win and finally they have to get a court order requiring you to pay the debts. If they repeatedly contact you regarding wage garnishment with obtaining a court order then the CA is violating the law and you can notify them to stop any type of threatening activity. If they refuse to stop it, you can make a complaint with the Fair Trade Commission and send a copy of the complaint to the (FTC) state agency.

[shanmarsh2]

Before they can garnish his wages for a medical bill, the creditor must first file suit and get a judgment. A bankruptcy--which must include *all* debts, although it usually has no impact on your mortgage or car loans--will have the same impact on his credit as an unpaid judgment.

[Friend In Court]

The Fair Debt Collection Practices Act protects you from this kind of conduct; contacting one's employer, making threats that they legally cannot carry through on. If you google the Act, you can find the text online. There are provisions in the Act for monetary damages as well as reporting them for violating it.

Originally Posted by elegyus I have a medical bill that has been sent to collection. I was recently approved for an eighty percent discount. Leaving me with only 1200 left to be paid. Tonight I was contacted by the CA, stating that I owe this amount. I told them what I could afford to pay each month. They refused. I said I would send in the payment anyway. She then proceeded to tell me that my account may be submitted for wage garnishment as soon as tomorrow, the amount would increase due to fee incurred, and be submitted to my emPloyer. There have been numerous "threats" of wage garnishment despite monthly payments. On top of that, I have been contacted at work repeatedly, despite noting on my account that I cannot be contacted this way. I thought the CA could not do any of this without first taking me to court. What are my options?

The first thing you need to do (and I mean tomorrow, ASAP) is to sit down and write them a cease and desist notice. You must include in your notice that they are not to ever call you, your employer, family members or friends or anyone associated with you in any way. You must word it specifically.

You might want to try googling sample cease and desist letters to collection agencies. There are a plethora of them out on the internet.

You must send this notice to them certified, return receipt requested. Go to the Post Office and get the necessary receipt so you can type the certified number at the top of your letter.

Do not sign the letter. Simply type your name at the end. (Example: Regards, John Doe)

You are correct they they must win a judgment in court before taking action on you, such as wage garnishment. Legitimate businesses don't call and threaten like that anyway. It's typical bottom feeder collection agency mentality. Do not talk to collection agencies on the phone. Never.

Once they are in receipt of your notice to cease and desist, they can no longer contact you except in writing, and only to inform you either that they've dropped they've decided not to pursue you for debt, or that they are taking legal action in small claims court.

You will receive a little green card back in the mail letting you know when they receive it. Once they receive that letter (notice), if they contact you in any way by phone again (including calls to your place of employment) you can then sue them. $1,000 per offense.