Can a Collection Agency Garnish my Wages?
A collection agency may not garnish your wages without following the bounds of due process.
From what my clients have told me, this threat occurs with great frequency. The typical scenario is that the individual has defaulted on a credit account. The original creditor, be it Citibank or Capital One or whomever, fails in its attempts to get the defaulting individual to pay. The individual’s debt is now referred to as “bad debt”. Many times, the original creditor will simply give up and sell the “bad debt” to an outside company, such as a collection agency, for pennies on the dollar, sometimes even less.
- July 11th
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