Legal Question in Credit and Debt Law in Tennessee
Agreement to repay
I owe money under a student loan default. I am being threatened with wage garnishment. I have sent three consecutive monthly checks to a collection agency. They have cashed each check. Does this create an agreement to repay? I have offered to continue to pay the same amount each month but they continue to threaten garnishment of wages. My resources are limited and garnishment (they say they will take 20% of my weekly check. They are quite agressive.
Thank you very much.
1 Answer from Attorneys
Re: Agreement to repay
Unless you have some sort of formal agreement, your payment of the debt does not normally constitute an enforceable agreement. The other side of the coin is that in most cases, if a debtor is making regular monthly payments, the creditor is not going to be too wild about hiring an attorney to collect on the debt.
With respect to their continued threats of garnishment, you may want to consult with an attorney who hanles cases under the Fair Debt Collection Practices Act. Depending on their conduct, some of their actions may be violations of federal law.
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