What can CC Companies *really* do?

**schmidle** · 10-08-2009, 08:47 AM

Hi, I'm new. Mostly a reader, not much of a writer. Still waiting on DR book to get here so I have to ask.... With all the phone calls I let the answering machine get, what can CCCs really do? I read that they can't touch your property..what about pay checks?

We were doing fine, fooling ourtselves, but paying bills when dh had to have surgery...and 2 since. Now I need to find some work, I Ebay like crazy cleaning out everything we don't need, but not a paycheck...just not many jobs to go around. I'm rural.

We're trying to keep bills up that we need..food, shelter, power stuff. We're reading everyones advice and learning. However, we need to know..what will happen with the CCs? We hope to get them paid eventually, but I sure can't talk to them. They're so pushy, they'd rather get their money than let me feed the kids! If anyone can tell me what "they did" or how to handle the calls I'd appreciate it!

schmidle

**Greebo** · 10-08-2009, 08:59 AM

At the absolute most they can ruin your credit report, sue you and after winning the suit, they can ask the courts for garnishment.

They will THREATEN you with all kinds of things they can't really do. They can't arrest you. They can't have you arrested. They can't take your house. And so forth.

And IN ORDER to garnish, they have to sue you. *IF* they sue you, you will get official notice of suit from the courts - not them. If you don't owe them substantial amounts of money - I mean, more than $10,000 per individual account, it's highly unlikely they will sue you, because lawsuits cost a lot of money to perform.

So - what do you do when they call?
1) NEVER EVER EVER GIVE THEM ACCESS TO ANY ACCOUNTS
2) Tell them, I'm sorry, we want to pay you back, but this month we cannot.
3) Tell them you'll be happy to talk them again in 2 weeks, in accordance with the Fair Debt Collection Practices Act
4) Get an answering machine that allows you to record calls.

Now if they call and get nasty rude, you start recording the call and TELL them, "As of this moment, this telephone call is being recorded. Do you understand and agree to have this call recorded?" They'll say no, so you say, "Well I'm sorry but I won't talk to you w/o this being on record, so call back in 2 weeks in accordance with the Fair Debt Collections Practices Act" and hang up.

And if they do agree, and they get/stay nasty, then you copy that tape and call a lawyer and the FCC and report them and send them each copies - and with the lawyer you ask about suing the agency.

Finally - READ UP on the Fair Debt Collections Practices Act so you know your rights.

Budget wise - you take care of the house first. Food, Lights, SHelter, Transportation, Clothing. Then you pay your debts as you are able.

**Greebo** · 10-08-2009, 12:13 PM

Dave Ramsey - on What Debt Collectors can/can't do.

**frugalfranny** · 10-08-2009, 01:11 PM

Thanks Greebo, for the info.....

GOOD LUCK schmidle.........hang in there. You can/will get it turned around.....just takes some time.

**andrew's mom** · 10-08-2009, 01:45 PM

Greebo, how did you become so wise in financial matters? I want a piece of your brain.....

**Greebo** · 10-08-2009, 01:51 PM

1) I married Ceashels
2) I listen to a LOT of Dave Ramsey.
3) I read. A lot. I read a lot of books about money.

You can do everything but #1.

On #1, we'll have to talk price...

(Oh I'm gonna get it for that...)

**andrew's mom** · 10-08-2009, 01:55 PM

Lol.......

**scottp999** · 10-08-2009, 06:13 PM

Wage garnishments have limits that vary by state. You might want to do a little internet searching on your state to see what the worst case scenario might be. I believe where I live, the max the judge can grant is 25% of net pay.

**McD** · 10-08-2009, 06:54 PM

Originally Posted by scottp999

Wage garnishments have limits that vary by state. You might want to do a little internet searching on your state to see what the worst case scenario might be. I believe where I live, the max the judge can grant is 25% of net pay.

Keep in mind though that there is a difference between wage garnishment and a levy/garnishment of a bank account. A levy is a one-time 'clean sweep' of the account which is court-ordered. If a bank is given a levy, by law they have to follow it. Let's say the levy is for 350$ and the bank receives it on a day hwen your balance is 278$. The bank legally has to freeze that 278$ and give to the levier of the account. Doesn't matter if oyu have outstanding checks or whatever, but it's a one-time deal. They would have to get another levy for the remaining $$.

Garnishments are similiar except they stay on the account until the total balance is paid to the garnisher.

This is a prime example of why Greebo said NEVER EVER give the credit card company your banking information.

**Palooka** · 10-09-2009, 01:09 AM

Originally Posted by Greebo

Dave Ramsey - on What Debt Collectors can/can't do.

Thanks for that. Very interesting.

To the OP. Good luck and I hope you get it all sorted out.

**NikoSan999** · 10-09-2009, 03:56 PM

In regard to never give them your bank account info..If you have EVER written them a check they already have it. No, you don't give them permission to get into your bank account but they already have it. I've been thru all this several times this year. American Express already had our account number. No they can't take money out but they have the info. Besides if it goes to court the court would demand it. IF it goes to court. Odds are in 6 months they are going to write it off if no payment is received. BUT if you make one payment the time starts all over. You will receive a 1099c for the amount written off.

Greebo is right on the record thing. I had calling and as soon as he said this is being recorded and an attempt to collect a debt I would say I want you to also know that this is being recorded on this end also on this such and such a date at whatever time. I am speaking to who from where. They will say I do not give you permission to record me/this. You will say "Why, we are recording the same exact conversation. Why do you object?" This throws them for a loop and usually hang up. If you get the chance before they hang up tell them that the next time they call it will also be recorded. I told one to make sure to read the script word for word because if one word was wrong I was going to sue the company and come after him also. Could I sue him? Doubt it but he didn't call back.
Always use the I'm recording also.

Friends wages from Home Depot were garnished but done so from gross wages, not net. Don't know if varies from state. His were garnished for about 3 to 4 thousand only.
They can also put liens on car if paid for and on the house to get payment if house ever gets sold. Force sell NO but lien still.
Only thing else darlin I can say is don't have a heart attack or stoke over it. Know you're upset and phone ringing is driving you crazy. I've been at this since January and they haven't eaten me yet nor have they busted down my door. But they are a pain in the ass.

One more note here. This comes from a lawyer. Change your phone number to unlisted and give it to no one but the school or absolutely necessary. No neighbors. They will call them too.

You can write a letter to them and tell them you no longer wish to be contacted by phone and only by US mail. They have to do this. Send it certified, signed for and receipt requested. This is proof.

Good luck and one way or the other you will survive. I'm writing this aren't I!!!!

**NikoSan999** · 10-09-2009, 03:57 PM

Ahh...one more thing..as far as the levy goes...you can cash your check and get money orders for electric, water, house etc. If in doubt don't deposit your check/money.

**Karen1** · 10-09-2009, 04:36 PM

My friend John was in this situation.
His wife got very very ill. Out of work. Disability took years to get......so in the meantime he had to go to a lawyer.

Lawyer said pay your mortgage first, property taxes, car payment etc. Pay what YOU MUST. The CC company can not do anything to you...short of taking you to court and ruining your credit. Which happened to him, credit shot, but he didn't care. He paid all the needed bills, put up wtih the CC harassment and when his wife's disability back check came, paid everyone off......so live your life, do what you can. The lawyer contacted the CC companies with a letter explaining the situation and threatened them with continued harrassment if they continued. They slowed down incredibly on bothering him.

hang in there....

**omalleyc** · 10-10-2009, 09:41 AM

Texas is a non-garnishment state so credit card companies cannot garnish your wages.

Texas is also a homestead state so they cannot get a lien against your house.

You may want to do a google search for your state "non-garnishment states" (include quotes). From the quick research I did, PA, NC, SC, TX, FL (head of household only it looks like) are all non-garnishment states.

It was harder for me to find anything about the non-homestead states as searching for that phrase didn't bring up much. searching for "homestead right" (with quotes) did bring up some information on a few states, but I didn't read through it.

Good luck to you!

**schmidle** · 10-10-2009, 04:40 PM

Ok,thanks ya'll. Another question....of course! lol Did/do you pay the minimums they request or what you decide you can do when you snowball at first? Just got Dave's book and he says keep up minimums....but at this state in our finances we can't even do that! Should I just make up an amount to give them? I'm squeezing n sellin but can't make that big amount they all want!

schmidle