Legal Question in Credit and Debt Law in Michigan

Credit card debt

2 years ago I received a letter from a credit card company stating I owed $300.00. I had reached my limit and in order to get additional credit I needed to pay the balance. I contacted them and stated I had never had a credit card and this was some kind of mistake. They had my name and SSN and told me no mistake pay up. After months of phone calls I never heard back from them. Yesterday I was informed at work that this had gone to a collection agency and they had been granted permission to garnish my wages for $2709.00. I immediately called the attorney's office representing this and was told a letter had been mailed out and I missed the court date so the case was won by default and I have to pay. I tried explaining to them that this was not my debt and was told that it is now. It is too late to do anything and my HR rep at work stated that next week I will be garnished for $196.00 a week until the debt is paid. I was also informed that the debt will keep increasing at 13% until it is paid in full. At that rate I will be paying 10 times the amount for a debt I never incurred. I was told by the collectors attorney that I should have filed a police report when this happened and it is to late for me to do anything. Can you help?


Asked on 8/30/07, 12:08 am

1 Answer from Attorneys
Victoria Easterday Law Offices of Victoria Easterday

Re: Credit card debt

In order for the creditor to have obtained a garnishment order, you must have been served personally, by certified mail, or by alternate service (posting on your door or publication in a newspaper). If you were never served with the complaint or judgment, you should immediately file an objection to the garnsihment and file a motion to set aside the judgment with the court citing lack of service on you. If this is the case, the court will most likely grant the motion. You would then have to file an answer to the complaint and defend the case. The creditor will be required to prove that you signed for the credit card. In the mean time, you should make a police report as it sounds like someone has been using your identity. Law enforecement will be able to track the purchases and hopefully track down who used your name.

I cannot emphasize enough that you must file your objection and motion immediately and ask for an expedited hearing so that you can stop that garnishment. Let me know if I can further help you.

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Answered on 8/30/07, 8:54 am


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