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Credit Card Bank Account Seizure?


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My wife stopped paying a Capital One Credit card in 2008. It was $1000 credit limit. She just got served yesterday saying Michael J Scott (Capital One Credit Attorney) was suing for damages of $1287.16 in charge off balance, $877.53 in accrued interest and $541.17 for attorney fees. I've done a lot of research and have found out that Capital One is, in fact, still the holder of the debt ( I looked into my wife's credit report and it is listed as "charged-off" not "sold/transferred"). This debt was from 2008 and we were married in 2010. We live in Texas. I know that they can't garnish her wages but they can seize a bank account until the debt is payed off. I have the following questions:

1. She doesn't have the bank account she had when she had this capital one account, she is only "on" my account and can't make any decisions but her check is direct deposited, she does have a debit card for the account. Is this account safe from seizure?

2. Can they seize a bank account if they don't know what bank and what bank account number?

3. There are some discrepancies on the legal work. No "proof" attached saying this is how much she owes. They just throw a number out there. Can she protest this and get the case thrown out?

4. Is it better to have a "default judgement" against you? Or is it better to show up to court and actually make whatever lawyer is there actually do some lawyering, no matter the outcome of the case?

5. If they can, in fact, seize MY bank account is it better to move my account out of state to a smaller bank? I have read that if your account is out of state the bank is less likely to grant the constable seizure.

Thanks!

Edited by micah344
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Any joint account will probably be game for them.

As far as getting an account, it's fairly easy to do - they will either subpoena you to appear and ask you under oath, or, they will send writs out to all the major banks around where you live. About 80% of the consumer deposits reside at only 3 major banks in the US.

Getting a default ensures the account being levied. Personally, I'd fight. He's already fixed his attorney fees, so after 2 or 3 hours, he's basically losing money on your case.

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Better to fight this or institute arbitration via the credit card agreement. Proof of the debt must be requested in discovery, such proof is rarely attached to a complaint. I would say no, they cannot attach your individual property or bank account. Texas is a community property state, but generally this only applies to debt that occurred during the marriage, not prior. Normally an authorized signer or convenience signer has no liability. I doubt your account could be tapped for an authorized signer's debt, but check with your bank, they all have different rules.

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Yes, Texas being a community property state means your skating on thinner ice, but fight them. I was told by a bank that one way around a joint account would be for you to have the account in your name, but give her power of attorney to access the account. This keeps her name off of it, but allows her to access it.

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Thanks for the advice and thoughts.

I called Michael J Scott yesterday to see about a settlement and was presented with two options:

$1900 lump sum

or

$157 a month for 18 months

Should I ask for an original bill/statement that shows all the proper charges and interest before agreeing to any sort of settlement?

Can I do this all before her appointed day in court?

If they can't provide it do I tell them to buzz off?

Thanks!

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Update:

I checked into what precinct it was filed in. It was filed in a different precinct from where we currently live. It was filed in precinct 1 and we live in precinct 4. Can I get it dismissed this way? I want to be sure before I try and settle.

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You may be able to get it dismissed but they will just turn around and file it in the correct precinct.

And yes, they could seize your acct with your wife's name on it I would move your acct to a small bank in some other state and I would take her name off and have her check sent to her. If you put your money in a major bank in your area they will find it. But they can't seize her money or your accts until they get a judgement.

You should fight this. I just won against them and so have several others. Even tho they are an original creditor they often don't have all that is needed to win a claim.

You might want to ask for arbitration with JAMS. It is very costly for them to go to arbitration and with that small bill maybe they won't pursue the claim if you ask for it. Look or get a copy of the cap one agreement for that time period and write a letter to cap one asking for aribtration per their agreement. When you answer the summons tell the court you are exercising your right to arbitration and that you deny the bill. The case should get removed from the court system. However, usually Cap One heavily protests this. Don't admit to the bill deny it. You stand a much better chance of making a decent deal with them if you fight them all the way. I wouldn't talk to them again either. I won my case by the way and they got nothing.

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Update:

I checked into what precinct it was filed in. It was filed in a different precinct from where we currently live. It was filed in precinct 1 and we live in precinct 4. Can I get it dismissed this way? I want to be sure before I try and settle.

You were sued in the incorrect venue????

CONGRATULATIONS!!!!!

The attorney just committed an FDCPA violation - one that is public too. I'd file suit against the attorney! Chances are, he'll have to go to Cap1 with his hat in hand to get money to defend it...

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The attorney just committed an FDCPA violation

1stStep, doesn't this depend on the information they have on hand? Perhaps he moved and they made a legitemate attempt to have him served at the only known address. Sounds more like a court venue issue, not an FDCPA claim. I never had to deal with the FDCPA until recently, not really up to speed on it.

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It will depend...I was sued by a collection attorney who did the same thing...claimed it was based on Experian's info...who had all my correct address info (and exposed him to an FCRA suit later for pulling my credit for litigation).

Even if (and I hate doing this), the attorney made an honest mistake, the threat of an FDCPA suit could be nice to leverage into a more favorable settlement.

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For no more than this case is for you should put up a fight and not make any agreements to pay it off. Actually, the Lawyer for Cap1 shouldn't even be talking to you about it since it isn't your case. Though I am not familiar with TX RCP's there is a lot of case law out of TX. The longer you keep it in Court the better your chance of them just dismissing it. It cost them to much to keep appearing in Court and answering discovery. Eventually, they will be losing money. I think you probably need to file a response with a MTD or in the alternative Motion to Move to Proper Venue.

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