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Bank account levy fees?

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Hello,

Looking for help with a bank levy question.

Last May,I received a letter from a collection lawyer that my bank account(actually the letter contained the names of 10 banks)would be levied for x amount. The bank grabbed $100 for their fee which left $20. Fast forward to today,my account was one again levied. This time without any prior letter and there was only $93 in my account. My question is what will my bank do as far as collecting their fee? What is the process if there is not enough funds in my account. And do they notify the lawyer that there are no funds available?

thankyou in advance

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I bet you missed a court day.I would not keep adding money to your bank account they will keep taking it till the debt is paid.If you missed court they got a default judgement against you.Call your courthouse and find out who is taking your money.You may be able to look on line at your local courthouse website.About the fees i would walk in to the bank and pay the fee the bank charged to stay in good with the bank.

Edited by racecar

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Thanks Racecar,

Yes,i did not make it to court. since the first levy last year,i have never kept any more than $100 in there. whatever,i put in,comes right out after using bill pay to pay smaller bills. the lawyer did not get any funds last year or any this year. BOA is collecting more money in fees than the lawyer. i honestly,did not have a money to give them. i'm behind in everything,including my mortgage. which is my current priority right now

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If the account remains overdrawn long enough they'll close it and turn you over for collection of the fees. They can also raid any other bank account you may have with them.

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If it was me, I would have closed ALL bank accounts after they had gotten the levy and started paying bills by postal money orders. I would also look into getting a bank account somewhere hard for them to locate.

Problem is, when you open a new account, that bank will run your credit to check you out, then it will appear on your CR. Guess who has access to your CR's.

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Also, I don't know if you have any credit cards, but most utility and other bills can be paid by credit card these days (either from the merchant's web site, or from your credit card web site - you can even schedule payments from your credit card web site oftentimes).

If you use a credit card for payments, then that's not something they can grab, since it's not money you have, it's "credit" that's available to you.

Other than that, I would just open a savings account in a small local credit union, and use that to deposit checks and just withdraw money and get money orders. In the old days we had to mail payments for bills, so it's not that big of a deal.

If you get a savings account in a small local credit union I think they're less likely to find you, since they don't have to run a credit check to open a savings account. Don't open a checking account there!

Also, even if they do find you and you find yourself in the same situation, credit unions will charge MUCH lower fees than BofA!! When I was with BofA, for example, and overdraft fee was $39. With my credit union it's $10. Overdraft protection transfer was $10. With my credit union it's $3. And so on.

So even if the credit union charge you a fee (which they might not), I'd bet it would be somewhere in the $30 range, rather than the $100 that BofA charges. At least that way it wouldn't cost you as much.

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I know. I really should have closed the BOA account. But it's soo much easier for me to pay bills thru bill pay. Funny thing is,right up until they tried to levy my acct before, i was making payments to the original creditors(JCP-Ge Money)thru billpay. Granted,i was paying $25 here,$40 there but it was something. I really wasn't trying to NOT pay the bill. I didn't even realize the original creditor charged off my acct. Yet they were still collecting my money from bill pay. I think eventually,the only way to get rid of these lawyers is to go to court

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OK, a few things.

First, if you absolutely want to use Bill Pay, then still switch to a credit union. At least your fees with be 1/3 what they are at BofA! My credit union has all the same features as the big banks, and there's no reason to be with a commercial bank. So at least use a credit union checking account and save the fees!

Of course, if you open a checking account there, then they'll find you again. But if that's the path you want to take, then at least save the fees with the credit union.

(Of course, you might not be able to open a checking account, since you might have the judgment on your credit report. I don't know about that. But it's worth a try anyway.)

Second, about the original creditors, they're completely out of the picture at this point. The JDBs bought the debts, and they now own the debts. Any money you send them goes to the JDBs (who paid pennies on the dollar to buy the debts), and the original creditors won't get a penny out of any money the JDBs collect.

So, the JDBs are basically bottom-feeders who are trying to make a killing by buying debts on the cheap and exploiting peoples' suffering and bad circumstances. They are not collecting FOR the original creditor. They are collecting for themselves, even though they never loaned you any money. So don't feel that by the JDBs getting your money that somehow it's going back to the original creditor. It's not. Just wanted to make sure that was clear.

Re. the original creditor still collecting money from your bill pay, you obviously set that up at some point to automatically pay them. And they're happy to collect the money. But they have no right to it. So turn that off, if you haven't already.

And, last, re. "the only way to get rid of these lawyers is to go to court." Nope. Not possible. You already have a judgment against you. "That ship has sailed," as they say. The time to go to court was when they sued you. Once you missed court and got a judgment against you, it's done.

The only remedy you might have would be if you were never properly served, and, thus, could not have known about the court date. In that case, you might be able to get the judgment reversed.

But if you were properly served and just didn't go to court, then that's the way it goes. Nothing you can do at this point.

Your only options would be:

1) Wait it out. Try to hide your money as best as possible. Use money orders and mail in your payments (like in the good ole days, before we had this new-fangled Internet thingie...), or pay with a credit card when possible (which they can't get to since, obviously, it's not money you have).

2) Declare bankruptcy. Then the levies will stop, and the court will put you on a payment plan to pay back (I think) 20% of what you owe over 5 years. I don't know much about bankruptcy, so take that with a grain of salt.

3) Contact the JDB and make arrangements to send them payments in lieu of them levying your accounts. Not sure if they would agree to that, but they might.

If it were me, I'd just do #1 and just bite the bullet and lick some envelopes once a month. But hey, that's just me.... ;-)

Good luck to you, either way!

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Thanks Nrgins,for all the info. I really don't mind mailing payments. The problem with that is a live pay check to pay check. Not enough time to mail the payments out. Hmm..I guess I could ask for a different payment date.

How long would I have to "wait it out"? Is there a way I could find out?

I have thought about "bankruptcy" ...quite often!! So not trying to get to that point. But it's still an option.

I'm kinda clueless in the difference between a CA and JDB. All I know is they are a law firm called Eichenbaum & Styianou, L.L.C.

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Well, you could, as noted, get a savings account with a small local bank or credit union and hope they don't find it (which they might not), and then use the merchants' web sites to have them draw money out of your savings account, instead of you sending it.

Also, even though you live paycheck to paycheck, I'm sure once you get into the routine of mailing the payments (a week before they're due, I'm guessing), you'll be able to make it work. Just a question of an adjustment period while you push your payment date back a week or so. But once you adjust, it'll be the same as now.

The period for a judgment varies by state. Most are 10 years, I believe. And some states allow judgments to be renewed for a second 10 years. Do an internet search and find out what it is for your state.

And, yeah, bankruptcy has its downsides. On the positive side, it allows you to start over with no collection activity. But you'd have to make the bankruptcy payments. It also costs money to go through it. But, like I said, I'm not knowledgeable about it, so I'm not a good source of info.

There is a bankruptcy section here in this forum. So I'd definitely check that out. There's also a Post Judgement section, which might help you understand your various options at this point. I'd definitely check them out.

Well, a CA (collection agency) collects money. And a JDB (junk debt buyer) buys junk debts (ones that haven't been able to be collected on) and attempts to collect on them.

So they both collect money. The difference is that the JDB owns the debt, and the money doesn't go to the original creditor.

I don't know anything about Eichenbaum & Styianou. You might want to post a new message in this forum and see if anyone knows about them. (But be careful not to post your name or account info, as Eichenbaum & Styianou might be doing Internet searches and might see your post.) I did find this one thing when I searched Google: Eichenbaum & Stylianou Complaints, Reviews - Terrible company But it doesn't say if they're a JDB or not. In that situation, they were representing Capital One, so maybe they're not.

Neil

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I have a quiestion I just received a letter from the sheriffs office about putting a levy on my bank account. I don't have a personal account with any of the banks they listed but my business account is in one of the banks. The judgement is against me personally, my business is a LLC...can they go into my business account? The letter is addressed to me personally and had nothing to do with my business it was a debt for a personal credit card???

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I have a quiestion I just received a letter from the sheriffs office about putting a levy on my bank account. I don't have a personal account with any of the banks they listed but my business account is in one of the banks. The judgement is against me personally, my business is a LLC...can they go into my business account? The letter is addressed to me personally and had nothing to do with my business it was a debt for a personal credit card???

I don't know. Might want to post that as a separate thread and see what kind of responses you get. Also might try the Post Judgment section of the forum. I would imagine they deal with those questions there all the time.

BTW, what did the letter say? Seems strange that they'd send a letter before levying if you've already gotten a judgment. Or do you already have a judgment??

Are you sure it was from the sheriff's office? Sounds like some kind of a scam, to be honest. Sounds like it's a debt collector trying to scare you into paying by saying they're going to levy your account, and then just list a bunch of banks. That doesn't sound legitimate to me.

Why don't you post what the letter actually says and we'll go from there. Also note whether or not you have a judgment or have been sued. All that information is important.

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If your business is a separate LLC with its own EIN, they cannot touch the funds as they belong to the LLC.

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If your business is a separate LLC with its own EIN, they cannot touch the funds as they belong to the LLC.

Elaine I would take 1ststep response over mind on your post. For some reason in ga I was told they could for me.

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