Legal Question in Credit and Debt Law in California

Re: Collections agency

As for the wage garnishment, yes, they are allowed to garnish her wages AFTER they obtain a judgment against her. Prior to a lawsuit and judgment, no they cannot garnish her wages unless she voluntarily agrees to it. I do not understand the additional $100 per month, but irrespective, until they get a judgment, no garnishment generally. As for the sister, you'll have to review each of their loan agreements to determine if there is a cross-collateralization agreement, or some other means of their increasing the payment on the non-defaulted loan for the defaulted loan.

Also keep in mind - if they are threatening (as collection agents) things that they cannot legally do - such as potentially the increase in the sister's car payment - then they are violating the law. The Fair Debt Collection Practices Act prohibits debt collectors from threatening actions they either are not, or cannot take. Document every single conversation anyone has with them as you may need that in the future.

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