maaj

Scared after seeing remark by creditor, HELP!

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Brief background: I decided to start up a second round of credit repair on mine and my fiance's credit. I started back in Jan. and slacked off. So I pull our credit reports (thanks to this board for the tips to pull the free credit reports) and I am confused now.

Fiance is from New York. He has lived in Alabama for the last 4.5 - 5 years.

Another Note: This was on TU, EX is requiring id verification for us to pull, so not sure if it is on there, and EX did has the OC on there (which is normal), but the Chase llisting is not on there.

OC is North Fork Bank and this is what they have listed (which we have known about being on his credit for years)

NORTH FORK BANK #XXXXXXXXX

275 BROADHOLLOW RD

MELVILLE , NY 11747-4823

(800) 223-9363*

Balance:* $12,467 *

Date Updated:* 08/2007 *

High Balance:* $20,162*

Past Due:* $0*

Terms:* $0 for 72 months*

Pay Status:* >Charged Off as Bad Debt< *

Account Type:* Installment Account *

Responsibility:* Joint Account *

Date Opened:* 05/2001*

Date Closed:* 10/2002*

Loan Type:*Installment Sales Contract

Remark:*>Profit and loss writeoff<

Estimated date that this item will be removed:** 11/2008

(This was a repo)

This is what was new on his TU report and has me confused:

CAPITAL ONE AUTO FINANCE #XXXXXXXX

3905 DALLAS PKWY

DALLAS , TX 75093

(800) 227-3863*

Balance:* $12,467 *

Date Updated:* 09/2007 *

High Balance:* $20,162*

Past Due:* $0*

Terms:* $0 for 1 months*

Pay Status:* >Charged Off as Bad Debt< *

Account Type:* Installment Account *

Responsibility:* Joint Account *

Date Opened:* 05/2001*

Date Closed:* 09/2002*

Loan Type:*Automobile

Remark: >Account payment, wage garnish<Estimated date that this item will be removed:** 08/2009

So I start looking and I see the whole buy out stuff that happened, so I am guessing that Cap1 now owns that account. I am confused by the remark: >ACCOUNT PAYMENT, WAGE GARNISH<.

It makes me think there is a judgment and garnishment in place for my fiance, but we have not been notified of anything at all. Our correct addresses are showing on credit report and when looking at all the time lines for repo and the UCC rules I think he is ok. What do I need to do to make sure that there is nothing pending that we should be responding to in order to prevent a default judgement. I am confused and not sure if we should be worried, so any advice would be appreciated, thanks!!

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I would check the local AL courts and see if a judgment was ordered. They can't garnish w/o a judgment. There will also be a notice sent to you from your payroll department telling you of any garnishment. If there is a judgment, you might want to get your cash out of the bank too, carry a low balance.

My guess is it's all crap. I think it's just the way CapOne decided to report. But check and make sure.

-r

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I would check the local AL courts and see if a judgment was ordered. -r

Thanks, we will do that today. If there is a judgment already he should take all money out of his bank? He is paid commission and will receive a 1099 for work, can they garnish in that type of situation?

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They can't garnish unless they file a judgment. So, do what the person above said and check filings in AL for a judgment. He should have received something from Capital One saying that they now own the account and that if he did not set up payment plans, they would file a judgment against him.

I am meeting with my attorney whom I use to clear up my clients CR's for mortgages. I will ask him the question about the garnishment for a 1099.

I think it would be pretty difficult to garnish any wages on a 1099 since he is considered "self-employed" and could make a work contract with different people at the same time. But, they could garnish his checking account because of this - if they filed a judgment. Hence the reason to keep only a little amount in his checking account.

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FYI=You CAN garnish someone who works as a contractor. I work in HR and we have one right now that I have implemented against someone we 1099.

This is a Federal Tax garnishment, so a CC may not be able to garnish a contractor, I just know that you can garnish them for government purposes.

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