Legal Question in Credit and Debt Law in Alabama

Hello, I work for the state of Alabama. I was garnished in 2009 for a mortgage loan. After about 8 months of being garnished, the company called for on a collect call for payment. That's when I found out that they had not received a single payment from the garnishment because THEY had not filed a request for condemnation. I got that straight and the money was release from the comptrollers office. Finally I paid it off. About 8 months ago they started garnishing me again for the interest that accrued while I was paying off the debt through the garnishment on the balance that I previously owed. This time I made sure that they sent the request for condemnation and my comptroller assured me that she had received it and had released the money. I am now finding out that they still have not received a payment because the judge has not approved the condemnation request so the money has been at the court for the last 8 months. I've been accrueing interest all over again on the balance owed. They have told me that could garnished again for interest. This practice seems to be a never ending cycle. My question is how can I stop this from happening a 3rd time?


Asked on 3/30/14, 12:16 pm

2 Answers from Attorneys
Rhonda Hood Hood & Lay, LLC

The entity that sued you to collect may be considered a debt collector under the Fair Debt Collection Practices Act, which provides protection from unfair and abusive conduct by a debt collector. We would need more information on your particular facts to determine this.

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Answered on 3/30/14, 5:01 pm
Randal Ford Ford Firm

If your income was garnished it does not makes sense that the mortgage company could charge you for interest because it was their fault the funds were not condemned. And the company had to have a judgment before they could garnish your wages. The next question is exactly what "interest" were they charging you? Interest on the judgment or interest in the loan itself (the original interest). You may have some tort claims in addition to FDCPA claims. You might have a good lawsuit. Feel free to call to discuss your case further. 205.454.7500. Randal Ford

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Answered on 3/31/14, 4:37 am


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