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Checking account frozen for credit card in collections?


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Hello,

I am new here, and hope that someone can give me some advice on this situation. My husband turns out to have had a credit card from Citibank that he stopped paying around 1999-2000. We have moved twice since, and have had no notices sent to us from them or the CA.

Part of the reason why he had stopped payment on this credit card was that he had a dispute regarding a vendor who had overcharged a large amount on the card. Unfortunately, this was years ago, and he has long since lost all documentation regarding this.

This week, we got a notice from our bank (M&T) saying that a restraining notice has been put on our checking account. It says that the amount owed is $7,368.45, and that they are required by law(?) to freeze our account for double the amount, and charge $100 for doing so.

My husband has since admitted that his father had forwarded to him a summons from the CA that was placed on the door of their house a few months ago. His father had sent a letter via certified mail to the CA that my husband no longer resided at that address, and we have not received anything from the CA to our current address at all.

Seeing as how we have not recieved anything from the CA regarding anything owed for about 3 years, is there a legal precident for them to do this? I don't know how they got our account information, but since the credit card was in my husband's name only, are they allowed to freeze a joint account, and incur the debt upon the second party as well?

Thank you for any advice you can give me,

Sasha

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What has happened is, they sued you and got a default judgment and have now proceeded to the collection stage.

You need to contact the courthouse where they sued and, get the case file and see if the service conform to state law.

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there are special rules on garnishing joint accounts, depends on the state laws. What happened here is your husband got a default judgement against him and a garnishment order. Your still in state I take it? If your out of the state where you signed the contract then the judgement must be domesticated to your new state for the garnishment to proceed from what I've found, but again I'm not familiar with your state laws. I'm curious as to how they found your bank account though. I'm also not familiar with the laws of your state, you should check and do some research. Also, check the local court files and see where and when the judgement was granted...If you were not properly served then you may have grounds for an appeal. Only problem is, the longer you wait the less chance you'll have. In some states it's 10 days! others 90...depends. You need to look into this quick and see what's up, do some research and get the big picture. calawyer might be able to provide some more detailed advice?

ching

p.s. i'm thinking if your husband got the summons in time for the hearing he's been served. Posting the summons on a door is acceptable means of service in some states and your saying he got it. Others, personal service only will do except when your suing someone out of state.

[Edit by chingasaholo on Friday, May 2, 2003 @ 06:50 PM]

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AS to how they got the bank info, it could be a simple as finding it on the credit application. Also, there are millions of data bases . If you have a cell phone or cable or use payday loans or rent to own, they sell that stuff to skiptracing services with all your info. www.teletrack.com is one www.merlindata.com another. Check out the industry links on the Merlin site.

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