Capital One CC---GARNISHED ENTIRE AMOUNT!

Question

i tried getting gas yesterday and the pump refused my card. i check my bank account today and there is a "legal" fee for $100 and one for $5. also - it looks like my direct deposit paycheck never came through the bank. i call the bank to find out that capital one took $905 out of my account with no warning. i was never served any papers. i WAS at one time making $100 monthly payments to litow law office, who was collecting the amount for capital one. i stopped making the payments a few months ago because i couldn't afford it. can they legally just take the entire amount?

Answer 1

In some cases this is permitted, BUT, this may be a case you should report to your Attorney Generals Office.

The Fair Debt Collection Practices Act DOES NOT apply to major credit card banks?   It applies only to the collection attorneys and professional debt collection companies they might hire. Original creditors are regulated by state law; however, the major credit card companies follow policies that closely mirror those of the FDCPA and will comply with your request to stop phoning you at home and work, etc., just as if you were dealing with a collection service. If you believe you have been harassed by an original creditor, or that the original creditor has done something illegal or threatening towards you, then research your state laws on the subject and contact the proper authorities to file a formal complaint. Typically, the Attorney General in your state is the proper authority to contact.

Now, because the law firm was hired by the original creditor then they have to follow the FDCPA, they also have to follow your states guidelines on garnishment and/or seizure of accounts.  Just because it may have been stipulated, they may still have to serve you a summons to get a court order. (this is where your state laws come into effect). If you were not properly served, then you might have a chance if you can prove that you were not given due process. The judge must consider your circumstances. It's possible to have the case dismissed. Unless you are very comfortable with filing pro se (by yourself) I highly encourage you to discuss your case with an attorney well versed in credit and debt consumer law.

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 2

Capital One doesn't care about your rent.  They care that you broke your legal agreement with them.  I'm sure if you read through the paperwork you signed that they have the right to take the money if you stop paying.  And there WAS warning.  When you stopped paying on the debt, that was your warning.  If you had read through the settlement, you would have known what was coming.

You just have to take your lumps.  Get your landlord to hold off on your rent if possible.  At least it's over and done with.

The lesson you should have learned is "Do not borrow more money than you can afford to pay pack."  In fact, if you can't pay off your cards at the end of the month, you are borrowing too much!  Live within your means and you'll be OK.

Answer 3

they can do it...i know people who have been thru it...borrow some pocket money to hold you till next payday and tell your land lord an emergency came up till next payday and tough it out....atleast you can say you paid them and its done and over. and once you catch up and recoup you will be able to see the good that came out of it....next time just call the firm and lower the payment due to financial hardship. then they wont come gunning for you like that.

good luck. p.s. they have thier money now make sure they take it off your credit report!!!

Answer 4

I did fill out a Stipulated Judgment.

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That's the problem and there's no solution to this....sorry.

Anytime you are in a dispute with another party....never, ever make it easy for the other side. In this case, make them get a judgement the old-fashioned way....by taking you to court.  This document never should have been signed....

Never be intimidated into signing a document by a debt collector...if they tell you they'll sue you if you don't, tell them "go head."  By signing this document, you made life very easy for them....they were able to get a judgment against you without bothering to go to court.

Answer 5

When you stopped making your monthly payments as you were supposed to you violated the payment plan so yes they are allowed to take what you owe because you didn't hold up your end of the bargain. You should have just called them a re-negotiated an amount.

You just said that you were told via e-mail that if you defaulted what would happen. You don't need to be served any papers, you were told in advance.

You'll need to borrow some money to pay your rent, maybe an F & F (friends and family loan).

The debt has long since been affecting your credit. The moment you were overdue on your credit card in the first place, your score started takinga dive and being reported as 30, 60, 90 or more days late to the credit bureau. Now that the account is in collections, that's another negative on your credit report. It will stay there for 7 years from the date you make your last payment which would be the day Capital One took the whole balance out of your account.

You may need to get a job, an additional part-time one and/or limit your spending until you get a better grip on your finances.

Answer 6

There was probably stipulations in your agreement to pay back that if you stopped they could take the entire amount. Check your papers. They probably also stipulated that there dodn't need to be warnings, you should know if you haven't paid them in months.

I don't know what you should do. The credit card company does not care about your rent being due. They only care that you failed to honor your agreement.