Legal Question in Credit and Debt Law in California

Re: Collection Agencies

Congratulations! Twins are quite a handful and a lot of joy!

As to your account! If you can sue anyone it would be the bank. No creditor can get into your account without a court order. My assumption is, however, that the collection agency went farther than you realize. They probably claimed to have served you with a Summons and Complaint, got a default judgment and a Writ of Execution, which they served upon the bank. If it is within six (6) months you can move for a default, even if beyond you can move to have the judgment vacated. It does not seem, however, that you have a defense to the claim. You might discuss this with the attorney for the collection agency. Knowing that you can have the judgment vacated may give you a little leverage to negotiate a settlement which will allow you to pay the debt in agreeable installments.

Re: Collection Agencies

Thank you for your posting, and congratulations on your new arrivals. The short answer to your question is, "it depends". If your original agreement authorized debit transactions from a bank account, you may not have a strong case against the collections agency, as they take all rights assigned to them under the original contract. Also, if they have a judgment against you, they have all rights to collect by levying against bank accounts, and garnishing wages, as Mr. Bardach has suggested.

If not, i.e., if none of the above situations apply to you, then you have rights under the Federal Fair Debt Collection Act to sue for what is an unlawful taking of your property by the collection agency.

I hope this helps, but please feel free to email me at [email protected], if you have further questions.