Wednesday, October 24, 2007

Creditors and Collection Tactics

Margaret Mary has an interesting post at her blog: Debtors Beware. She tells of how a creditor put a freeze on an acquaintance's bank account -- without prior notification. All over a simple oversight.


Meredith from Merchant Ships said...

Found your blog through Margaret Mary's.

I'm excited about joining the Yahoo group, too!

Sarah said...

I found your site yesterday and am glad to subscribe! It looks great.

I posted a response at Margaret Mary's site but it hasn't shown up yet.

FYI, There are very few creditors (mainly governmental such as the IRS) who can attach your bank account without prior notice.

The other creditors (credit cards, etc) need to first file suit and win a judgment in court. After that, yes they can attach without telling you first, but it's not like you are blindsided... usually they have been trying to collect for YEARS before they actually sue. (And if you are being sued, the lawyer's office will contact you with details so you can show up!)

However, if you have requested they stop contacting you, or changed your number/become unreachable, you probably won't know when they are suing, but I wouldn't exactly call that a simple oversight.

So yes it CAN happen, but we shouldn't all be worrying and losing sleep thinking it could happen to anyone... if you pay your bills and keep your credit bureau info up to date, it won't.

(But getting out of debt is always a good idea!)

Margaret Mary Myers said...

Hi Sarah,

Thank you for commenting at my blog. I posted a reply in the body of my blog:

Thank you for commenting!

Margaret Mary