Help! no summons or service...$800 stolen from bank acct

[pursuit]

Help! my sister sent in a check to a collection agency about three months ago. I looked at the paperwok and told her to cancel check and ask for validation; there was a large "interest charge" I subsequently sent letters to the original creditor asking to pay directly. Heard no response. The CA sent a letter in which the total amount due now reflected $0. They had previously theartened her over the phone when she stop-paid the check. They told her that stopping paymnent was illegal in WA. I looked up the statutes and since she had good cause...debt validation...she was within her rights. Anywho, today she calls me and tells me that all $800 plus was garnished/witdrawn from her account. The original debt was only $325! She was never summons, served, anything! This has got to be illegal! Help

[divemedic]

Either they went to court without telling her, or they used the numbers on the check to do an e-check. What does the bank say?

[ghacorp]

It could be a legal debit. Once anyone has been previously authorized access to a checking account or has the information on file for future payments, it's a good idea to change the account numbers. DV does not automatically stop preauthorized withdrawals, but merely puts the creditor on notice they are required by law to verify the proper owner of the debt and how the owing amount was derived generally speaking. They must also cease collection efforts in the interim. It's no secret a collection agency would take the opportunity to drain an account while they still had the opportunity.

[pursuit]

The bank says garnished from judgement. Her new address was spelled out very clearly on ALL our letters. They never did explain the interest charges, so therefore never validated the debt, just moved onto a judgement!

[divemedic]

If you can prove that the CA had your correct address and served the wrong one, you will be able to vacate and sue for fraud.

[pursuit]

that sounds too good to be true!

[KentWA]

pursuit, who is the CA?

Not only can you get them on fraud and have the judgement vacated, tell her that stop payment was illegal in Wa is a violation of RCW 19.16.250 of the Wa Collection Agencies act. The consumer protection act (RCW 19.86) will allow you treble damages!

[pursuit]

Intellisense with offices in Bothell and Auburn or Renton. The Lady was a real B!tcH and I think she made a BIG mistake here!

[KentWA]

I have not had to deal with them and have not heard anything about them. Have you checked the BBB's site about them? Although the BBB seems to have all the CAs I am dealing with "In Update" and there is no information available other than address.

[pursuit]

No, but will do that. Also, will be lodging formal complaints with BBB FTC AG tomorrow morning. Also will be in touch with a lawyer that goes to our church.

[Revco]

It just so happens that I've been reading quite a bit about Washington law lately. If a judgement was filed, Washington law requires that a defendant be sent a copy of the writ of garnishment and a notice/claim form to the last known address by certified mail return receipt on or before the date of garnishment. You will want to study RCW 6.27.130 and other statutes surrounding it in section 6.27. Also applicable is RCW section 4.56. Read it, live it, breathe it...unless you want to hire a lawyer.

Go here for Washington law:

http://www.leg.wa.gov/RCW/index.cfm#RCW_by_Title

This could very well be challenged in court...though you will need to challenge the judgement first before countersuing for FDCPA violations. Don't muddy up a judgement challenge with countersuing arguments...keep the subject to the judgement and violations surrounding it only. Challenge the judgement ASAP!! Countersue them later.

It's likely the company will be ordered by the courts to return the money that was taken. At that point, if verification was provided, would be a good opportunity to make a negotiation with the Plaintiff to make payment for the original amount owed and request detailed verification of the added fees (interest, collection costs, etc) that increased the debt over 100% - they have to provide documentation of this if it has not all ready been provided. (RCW 19.16.250.8.ci-cvi)

Oh...and add to your list of complaints the Department of Licensing for the State of Washington. They will investigate your claim and will likely be of greater assistance than the BBB, AG, FTC.

Good luck!!!

[Revco]

KentWA...contact the BBB by email about the CA's you're dealing with. In my experience, they quickly (1 business day) update the records on their website, if requested.

[KentWA]

Revco, Believe me I have, repeatedly. Since the Regional office that handles complaints is litterally 20 ft from where I have lunch once a week I have been in their office dropping off complaints, asking questions, etc. I can not be certain, but I have the feeling that some of these guys have tried bullying the BBB and they took the easy road. The excuses of why those pages are always in update mode has been varied from the person that does the research is on vacation, to the Webmaster is out sick.

I personally now just use the BBB as part of the paperwork mill. They are the first ones I file a complaint with first, knowing that they really can not force any type of solution. But it keeps my name in front of the CA and may get them to settle faster after they get a BBB complaint, AG investigation, etc. followed by my ITS.

[pursuit]

revco and kentwa...THX a MILLION! or at least a few thousand!

Will keep you posted

[Revco]

You're welcome Persuit. If you need further assistance, I will do my best to be on top of it. Definately let us know what happens with this...I just cringe when this sort of thing happens.

KentaWA - That surprises me as I've had really good luck with the BBB. You may be right that there are some other politics going on that we're not privvy to. You're right that BBB complaints just add to the pressure and help to not let those CA's just forget about you.

[pursuit]

Hey! FYI...Money was pulled on Monday; rec'd copies of all judgement/garnishment court papers from CA CMRRR on Thurs. Also rec'd copies of the bank's directive to withhold funds. Judgement was filed in Clark County where she resides.

Question: Do we have a timeframe in which to dispute the validity of this fraud before the money is released to the CA? The paperwork makes it sound that way. Sorry, I don't have it in front of me right now.

Also, The monetary breakdown of the judgement shows sis's current and correct address and shows a $24 personal service fee. SHE WAS NEVER SERVED! How do we attack the service when they say "We served her on this and this date and time"...?

[Revco]

I wouldn't wait very long, if that's what you're asking. As I mentioned, WA law requires you to be served on or before the day of garnishment. The only exception to this case is when a pre-judgement is filed - which can only be established if you are leaving the state or intend to "run"...not the case here.

In this case, you were wrongfully served. Get proof that the money was extracted on Monday...you have the proof you were served on Thursday. I would also contact the courthouse and find out when the judgement was approved...if they garnished before the judgement was filed, they have another violation.

Technically they can add a service fee for garnishment...I am uncertain how to interpret the law because it says the amound cannot be greater than $20 for the first answer and $10 for the second answer. I'm not sure what that means.

My best advice would be to contact a lawyer at this point. Under WA law, you are entitled to reclaim this cost if it can be established you were served incorrectly. Nothing quite like free legal defense paid for by the plaintiff.

I would also advise you to read everything regarding judgements in Washington here. This will help answer your questions and let you know what to inform your lawyer about.

http://www.leg.wa.gov/RCW/index.cfm?fuseaction=chapterdigest&chapter=6.27

[pursuit]

Well, we spoke to an attorney (friend of my mother's) last evening. First red flag is he says credit/consumer law is not his specialty. Second, says he has not studied FCRA/FDCPA since law school in 1987.

I need help! What are the rules of service in WA? These jokers are affirming that they served my sister's residence on 7MAY at 814P.M. Problem is, all three of my siblings were working at that time. So, the affidavit/Return of service paperwork is otw. As far as I can gather, Service must be by cert mail, personally delivered to respondant, or otherwise rec'd by an able adult that resides at the respondant's address. Obviously, none of these things happened!

What's more, when my sister told 'her' attorney that she was NEVER served he said "I find that hard to believe" Wait a minute! an attorney thinks that fraudulent process never takes place? WTF! Counsel also was in contact with CA today asking if they would drop judgment and return the balance minus original debt due.

The answer, a RESOUNDING NO!

Now my pregnant sister is in tears and ready to fold and pay the outstanding balance on the judgment. Let alone, she thinks that my credit repair crusade is a joke. The fact is, there is fraud here; plain and simple.

ADVICE PLZ!

[Guest]

First of all you need to go to the courthouse and get copies of EVERYTHING in the file.

If they say they served her their should be a green card copy OR her signature.. or the signature of the person stating that he served her.

This CAN be attacked in court.

Next thing you do is start calling EVERY lawyer in the phone book and ask them if they know consumer law specifically FDCPA.

Let us know what else you find out.. and tell your sister that if she just hangs in there.. this can be worked out.

And she might get some cash to spend on that new baby if she can just be patient and follow through ....

[hoapres]

1. You need, and in this particular case the posters have done!, read your state enforcements of judgment act.

2. Taken as an offer of proof since I have no knowledge of Washington state law that all posts are accurate, my reading is that the judgment creditor merely has to mail the bank levy order on the day of execution.

Maybe I am reading it wrong, but serving the levy order in advance would probably defeat the purpose of a bank levy. If I know that my account is about to be seized then I am going to move my money.

3. You may be able to file an objection to bank levy. You should read the bank levy order which may have contact information for the levying officer.

4. I am not sure this is a matter for Federal Law as it appears to be an execution of a judgment rendered in a state court.

5. The bank is probably not legally liable for the levy as they were served with a bank levy order presumably from a law enforcement officer - i.e. sheriff or registered process server.