Legal Question in Credit and Debt Law in Georgia
Paid off Car Loan
This if for a friend that is computer and internet impaired so I will do my best to ask his question.
Is it lawful for a collection agency to garnish wages of a loan that was settled in 1998?
The story is that my friend co-signed on a car for his daughter in 1995. His daughter was in an accident in 1997 and totaled the car. The pay off on the loan was $2600. The finance company sent that amount to a collection company. My friend settled with the collection company for $1300 in 1998. He has all the paper work and all the canceled checks to prove this.
According to him, about three months ago his daughter received a letter form another collection agency about a debt being owed for the car. He contacted the orginal agency about this but they say they have no records of his pay off. He sent everything ie. the cancled checks and contract for payoff to the current collection company and was told that it was not enough proof. The current collection agency is now garnishing his daughter's wages.
We live in a small town in Georgia and can not find a lawyer in our area. What can we do?
1 Answer from Attorneys
Re: Paid off Car Loan
One would have to look at the paperwork to see for sure, but does the paperwork expressly say that the claim against the daughter was released? A creditor is generally free to collect from any liable party - they just can't generally get a total of more than they are owed. Nevertheless, if her wages are being garnished it means a judgment was entered against her, which would be another big hurdle.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
