can a creit card company freeze your bank account without a court order HANDED to you?Capital one- Time issue here.

[JOSUE]

Hi all.

A while ago I decided not to pay any credit cards to get caught up on Mortgage, Maintenence, secures loans,phone, coned, and living.

Some credit cards worked with me for lower payments for a year, but Cap one- no go.

My normal payment monthly with them was 120ish per month. Now they want 900.00 to keep current. Going on 5 months without paying them. Getting very nervous. Have never been so late with a payment

Research on the web has many horror stories of them just emtying out you account. (they know mine, I always paid online) or freezing bank accounts.

So, looked up the law (NY) and saw it takes a court order to do that legally, although people speak about fraudulent activity on Cap 1 part. (Saying they sent notice,when none was sent, etc)

So,

Anyway, I thought, I guess, since they do not want to work with me they will send me a judgement(server?) to show in court, but my concern is that they will SAY they sent one and commence garnishment.. On the other hand if they HAVE to SERVE you or send registered mail,and freeze my account without having done so then they would have to prove that and if we went to court it would work in my favor.

I am going to change bank accounts, but my big concern is wage garnishment. I know some judges will see hardship and detirmine you work out a plan, which I am willing to do(they aren't), but my job is such that I get called when needed, and if it was too much trouble with a wage garnishment, they can call the next person "on call" down the list(i am an Independant Contractor with a steady place I work), thus avoiding the law that states you cannot fire someone for one wage garnish order.

Wondering if any of you have had experience with either Cap 1 and how agressive they are-- or-- working once it gets into court with a judge to work out a plan.

Any advise appreciated.

Thanks,

Josue

[chief115]

I do not believe a credit card company is going to garnish your wages or file a judgment against you. Credit card debt is unsecured. We also stopped paying on Capital One to help make ends meet and that was 4 years ago. The statute of limitations has expired for collection purposes. While we received calls from them and the collection agency that they sold the debt to, we never received anything about them taking us to court for payment. Credit card companies will use any and all scare tactics to try and get you to pay. The important thing is to be knowledgeable about what they can "legally" do.

[jakelabry]

Credit card companies CAN sue you in court and obtain a judgement which may allow wage garnishment - state laws will apply here. It really is a crap shoot as to whether or not they will. As for freezing bank accounts - years ago I closed an account with Union bank in CA and opened one with Wells Fargo, apparently there was a negative balance on the old account due to a check or something presented after account was closed. It wasn't but a few dollars so I ignored it. Union Bank was able to freeze my Wells Fargo account until they got their money, so ...

[JOSUE]

Thanks Payment Assistance

That's what the problem is. It's under $5,000. so I wasn't sure if they sue in small claims court or which court in nyc these judgements go to. I called the attorney general just to get info, not much help so I'll call civil court house Monday.

Cap one won't make payment plans, but will take smaller payments occasionally(they took $100.00 even though they said I needed to pay $900.00 to avoid court,but they only removed one late charge), which leads me to believe that they don't want to spend money for lawyers for a small amound due. Either way it is just a band aid. My first priority is Mortgage, Maintenance, etc.I'll soon fall more behind with CC's

I have a feeling they will keep this up(not caring that I am late and taking smaller payments every now and again) for a while while adding late fees. They make money, why not? Even though work is picking up(bad summer), it so hard to get back on track when one is so far behind.


Money, Money, Money. Yeah, money isn't everyhing, but man when you don't have it its all consuming.

Just *****in' now.

Thanks.

Josue

[Do not want to lose it]

Thanks Payment Assistance

That's what the problem is. It's under $5,000. so I wasn't sure if they sue in small claims court or which court in nyc these judgements go to. I called the attorney general just to get info, not much help so I'll call civil court house Monday.

Cap one won't make payment plans, but will take smaller payments occasionally(they took $100.00 even though they said I needed to pay $900.00 to avoid court,but they only removed one late charge), which leads me to believe that they don't want to spend money for lawyers for a small amound due. Either way it is just a band aid. My first priority is Mortgage, Maintenance, etc.I'll soon fall more behind with CC's

I have a feeling they will keep this up(not caring that I am late and taking smaller payments every now and again) for a while while adding late fees. They make money, why not? Even though work is picking up(bad summer), it so hard to get back on track when one is so far behind.


Money, Money, Money. Yeah, money isn't everyhing, but man when you don't have it its all consuming.

Just *****in' now.

Thanks.

Josue

I kept 1 card which is Capital One, only because the balance was under $2000. and in this State they can take you to small claims if it is under $2000. All my others were over $2000. I have not and will not pay those.
They can take you to court pretty fast if it small claims because it is cheap for them.

I have been in small claims court many times -close to a dozen these past 2 years over another matter and I have learned a lot by watching what happens to others in there.
There are 1 or 2 Lawyers that come in every day who have a long list of cc companies they are in there for.
I read an article this year about how the Lawyers get paid. The fee per case -was
$40. I do not know if that is a daily thing or total thing. Maybe someone else here knows. Not that it matters to us really.

The courts are packed with these cases.
You have to fill out a financial form and they determine a payment you can afford. If you do not pay they can go after your wages by filing an execution order.

[luvmyhorse]

I know someone who said a credit card company got a judgement on him froze his account and took 3 grand without him every knowing about the judgement or getting served.

This was in NY. So I would be careful and open another bank account and transfer your money.

Hi all.

A while ago I decided not to pay any credit cards to get caught up on Mortgage, Maintenence, secures loans,phone, coned, and living.

Some credit cards worked with me for lower payments for a year, but Cap one- no go.

My normal payment monthly with them was 120ish per month. Now they want 900.00 to keep current. Going on 5 months without paying them. Getting very nervous. Have never been so late with a payment

Research on the web has many horror stories of them just emtying out you account. (they know mine, I always paid online) or freezing bank accounts.

So, looked up the law (NY) and saw it takes a court order to do that legally, although people speak about fraudulent activity on Cap 1 part. (Saying they sent notice,when none was sent, etc)

So,

Anyway, I thought, I guess, since they do not want to work with me they will send me a judgement(server?) to show in court, but my concern is that they will SAY they sent one and commence garnishment.. On the other hand if they HAVE to SERVE you or send registered mail,and freeze my account without having done so then they would have to prove that and if we went to court it would work in my favor.

I am going to change bank accounts, but my big concern is wage garnishment. I know some judges will see hardship and detirmine you work out a plan, which I am willing to do(they aren't), but my job is such that I get called when needed, and if it was too much trouble with a wage garnishment, they can call the next person "on call" down the list(i am an Independant Contractor with a steady place I work), thus avoiding the law that states you cannot fire someone for one wage garnish order.

Wondering if any of you have had experience with either Cap 1 and how agressive they are-- or-- working once it gets into court with a judge to work out a plan.

Any advise appreciated.

Thanks,

Josue

[luvmyhorse]

If you are not paying? Does anyone know the answer to this?

[davephx]

For a mortgage if they get a judicial foreclosure they can get in most states a default judgment (depends if original purchase or refi) and attach your bank account.

For credit cards much faster and easier to file suit and if they get a judgment and attach any bank accounts and garnish wages. Many credit card companies are doing this fast usually after 180 days late since they have to write off at that point per banking regulations, unlike for mortgages which are secured.

After any judgment they can bring you into Court to disclose assets which they can get once they have a judgment. The Court doesn't care about financial hardship. The credit card company has to prove the debt but if they do it is often an easy judgment for the credit card issuer to get. If sold to collection agency harder to prove the debt and the transfer but very complex to try and defend in Court.

[HopefulinSeattle]

Not sure if this will help you or not, but I thought I would share.

A biz partner of mine has had failed businesses with credit card debt, and he shared a tactic with me I found interesting and I'm going to try on my CC (no longer paying). He called each of them and said that he had "X" number of dollars that he could use to settle all of the credit cards balances with this money and he wanted to know what they were willing to offer. He told them once the money was gone that was it. He was able to successfully settle with all of the credit cards for pennies on the dollar. He mentioned it took several phone calls back and forth to get them down to an amount he was willing to pay, but he was successful. He's also a calm, level headed negotiator and he didn't "threaten" but he just "let them know" that this was all he had and they took the bait. It was all unsecured CC debt in the business name, and secured personally. The debt was settled in full.

Also, another anecdotal piece of information. I am getting mail for an old roommate (and they told me to open it and forward any information that was important as they are out of country). So, I open up their CC statement. In the last 2 years since he stopped paying, it's been charged off, and the collection letters have offered to settle for less and less each letter he receives. It appears it is down to about 10 cents on the dollar now. He hasn't received a letter in months, though.

[youngbel]

Hi all.

So, looked up the law (NY) and saw it takes a court order to do that legally, although people speak about fraudulent activity on Cap 1 part. (Saying they sent notice,when none was sent, etc)

So,

Anyway, I thought, I guess, since they do not want to work with me they will send me a judgement(server?) to show in court, but my concern is that they will SAY they sent one and commence garnishment.. On the other hand if they HAVE to SERVE you or send registered mail,and freeze my account without having done so then they would have to prove that and if we went to court it would work in my favor.

Josue

I am in a different state, but I've dealt with credit card companies. First, make sure you answer any legal summons the company may send to you; if not, in my state (and I am sure this is true in others) they can get a default judgement without you appearing, and possibly without you knowing about it. State laws and forms vary, but when you answer the summons also see if there is a notice you can file requiring that they notify you of all future actions/legal proceedings relating to the complaint. That should prevent any legal actions occuring that you do not know about. Most courts also have online databases of upcoming courty dates, so you might want to periodically search the NY court databases to see if a legal complaint has been filed against you. If you have to go to court, bring a summary of your expenses and income. and tell the judge what you can realistically pay. If you have any bank accounts (checking, savings) with the same bank as your credit card company, move to a different bank -- they have the right to take the money from your checking to pay the credit card.