Sign in to follow this  
PSI

Midland garnished all money without a court summon to us

Recommended Posts

Me and my family just had our money garnished by Midland Credit. This is apparently debt from 9 years ago that my mom seemed to have completely paid off, but on their website, I found her payment history and she did give them money for 4 years manually. They re-opened the case apparently in 2017 and had no changes to the filing until February 28th. We received no court summon for this year and the amount owed never changed even though she was actively paying them back for a number of years. The court orders also mention nothing about interest. She owed about $3.1k, but combining everyones amount taken out of the bank accounts, they took more than double of that. We are getting a lawyer next week to help out, but how is this even possible?

Share this post


Link to post
Share on other sites
4 hours ago, PSI said:

We are getting a lawyer next week to help out, but how is this even possible?

They got a default judgment. If your jurisdiction requires personal service, Midland will say they tried to serve your mom, and either lie and say they did serve her, or say they couldn't and got permission from the court for alternative service via postal mail or whatever other means your court rules allow.

If you're getting a lawyer, he/she will help you get the judgment set aside, and will probably convince Midland to dismiss the case that same day if you have evidence of the payments being made.

Share this post


Link to post
Share on other sites
4 hours ago, Harry Seaward said:

They got a default judgment. If your jurisdiction requires personal service, Midland will say they tried to serve your mom, and either lie and say they did serve her, or say they couldn't and got permission from the court for alternative service via postal mail or whatever other means your court rules allow.

If you're getting a lawyer, he/she will help you get the judgment set aside, and will probably convince Midland to dismiss the case that same day if you have evidence of the payments being made.

I can't tell if she finished all payments since I can only get about 10 latest payments on there, but her last payment made was in 2015, so they seemed to have done this since the statue was almost up. But even then, since she made some sort of payment even if it wasn't fully completed, the amount we owed should have been less, correct? And what about interest?

Share this post


Link to post
Share on other sites

Interest can easily double whatever balance in 4 or 5 years.

I'm guessing it wasn't completely paid off. Midland will have account records, so you'll need your own to challenge what they bring to the table. 

Share this post


Link to post
Share on other sites
2 hours ago, Harry Seaward said:
 

Interest can easily double whatever balance in 4 or 5 years.

I'm guessing it wasn't completely paid off. Midland will have account records, so you'll need your own to challenge what they bring to the table. 

But even if it wasn't paid off completely, the amount for garnish shouldn't be the amount they requested in 2011, right? Is this a losing battle, then? 

Share this post


Link to post
Share on other sites
3 hours ago, PSI said:

But even if it wasn't paid off completely, the amount for garnish shouldn't be the amount they requested in 2011, right?

If only half was paid, and then interest on the remaining balance, it's certainly possible the new amount is pretty close to the original amount. 

3 hours ago, PSI said:

Is this a losing battle, then?

It usually is if you can't prove payments. 

What kind of debt was this originally? Who was the original creditor? You might be able to use arbitration, depending on who and what.

Share this post


Link to post
Share on other sites
10 minutes ago, Harry Seaward said:

If only half was paid, and then interest on the remaining balance, it's certainly possible the new amount is pretty close to the original amount. 

It usually is if you can't prove payments. 

What kind of debt was this originally? Who was the original creditor? You might be able to use arbitration, depending on who and what.

Okay, so I read the documents a bit more closely. My mom owed $5k in a credit card bill with the court fees. She agreed to pay $50 every month starting on December 2011. Her last payment was on 2015 and apparently, the agreement she signed said if she doesn't continue paying until the amount due is paid off, they don't have to notify her and can garnish the money when they do. She paid $1.9k so she now owed $3.1k, which is how much the garnish was. The more I read this, the more I see this as a losing battle and I HOPE that whatever attorneys they go to will tell them the same and they won't continue. The only other option I can see would be to see if they could take them to court for damages on me as I earned the money they took on my own and it did not belong to my mother even if her SSN was tied to my account.

Share this post


Link to post
Share on other sites
2 hours ago, PSI said:

the agreement she signed said if she doesn't continue paying until the amount due is paid off, they don't have to notify her and can garnish the money when they do.

This is called a stipulated judgment, and because your mom agreed they can take her money, there's no recourse except for money that you personally deposited into that account. You will have to get some sort of receipt for the deposit of your money to show it was separate from your mom's assets. 

It's probably time to get your own bank account, because this will keep happening any time there's money in the account that you're using with your mom. 

Share this post


Link to post
Share on other sites
41 minutes ago, Harry Seaward said:

This is called a stipulated judgment, and because your mom agreed they can take her money, there's no recourse except for money that you personally deposited into that account. You will have to get some sort of receipt for the deposit of your money to show it was separate from your mom's assets. 

It's probably time to get your own bank account, because this will keep happening any time there's money in the account that you're using with your mom. 

We already separated my account from hers. They also didn't take all the money after all. My mom still had some left and my grandmother as well. There's no wage garnishment notice either. It seems that because I had so much money as well as my step-dad, we basically paid them off via the garnishment. They'll still see an attorney with all the documents, but I think we'll just let it slide and get some financial help from family and friends. 

Share this post


Link to post
Share on other sites
On 3/15/2020 at 10:02 PM, Harry Seaward said:

This is called a stipulated judgment, and because your mom agreed they can take her money, there's no recourse except for money that you personally deposited into that account. You will have to get some sort of receipt for the deposit of your money to show it was separate from your mom's assets. 

It's probably time to get your own bank account, because this will keep happening any time there's money in the account that you're using with your mom. 

Would you mind explaining what this all means? This was filed in 2017.

Screenshot_20200316-220316__01.jpg

Share this post


Link to post
Share on other sites

It's saying your mom agreed to a $3,000 judgment against her, and agreed to provide a financial statement 45 days following the entry of judgment. It also says that they waived post-judgment interest, so they can't legally collect more than the $3,000 plus whatever court costs they incur to execute the judgment. 

Share this post


Link to post
Share on other sites
3 hours ago, Harry Seaward said:

It's saying your mom agreed to a $3,000 judgment against her, and agreed to provide a financial statement 45 days following the entry of judgment. It also says that they waived post-judgment interest, so they can't legally collect more than the $3,000 plus whatever court costs they incur to execute the judgment. 

Wait, so they did illegally take more!  Now, she didn't file a financial statement to my knowledge though. Will that cause issues?

Share this post


Link to post
Share on other sites
43 minutes ago, PSI said:

Will that cause issues?

The bigger issue is she breached the agreement, so now they aren't obligated to waive the interest. 

Share this post


Link to post
Share on other sites
1 hour ago, Harry Seaward said:

The bigger issue is she breached the agreement, so now they aren't obligated to waive the interest. 

Yes, but we never received a letter itself, so we never had a chance to do so anyways. I still don't get how the Final Judgement bill of the Garnishment doesn't have the full amount including the interest or mentions plus interest. How is that allowed?

Share this post


Link to post
Share on other sites
10 minutes ago, PSI said:

Yes, but we never received a letter itself, so we never had a chance to do so anyways.

She knew what she agreed to. She should have called if she had questions. 

11 minutes ago, PSI said:

I still don't get how the Final Judgement bill of the Garnishment doesn't have the full amount including the interest or mentions plus interest. How is that allowed?

The point of the stipulated judgement is to streamline the garnishment/levy process. If you challenge it, they will have to account for their totals. This is why stipulated judgements are bad news. 

Share this post


Link to post
Share on other sites
19 minutes ago, Harry Seaward said:

She knew what she agreed to. She should have called if she had questions. 

The point of the stipulated judgement is to streamline the garnishment/levy process. If you challenge it, they will have to account for their totals. This is why stipulated judgements are bad news. 

She didn't really know what she agreed to until after finding the court documents post garnishment and even then a lot of details were barely remembered. All she knew was her court visit in 2011.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this