Legal Question in Credit and Debt Law in Texas

Collection Agency Threats

I have an old (over 6 yrs.)Montgomery Ward account that was in dispute before it ever went to a collection agency. The account has been bounced from one agency to another over the years. The agency that has it now calls me at home and at work. They want a large sum of money to settle the debt but are not willing to take payment in smaller increments. I know they can't garnish wages (which they are threatening to do)but can a collection agency, who is not the original lender, garnish my bank account? Thanks for your help!


Asked on 10/31/02, 12:16 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Collection Agency Threats

They cannot garnishee your bank account unless there is a lawsuit or a judgment taken against you. Moreover, attempting to collect a debt that is outside the statute of limitations is a violation of the Fair Debt Collection Practices Act. The statute for debt, in Texas, is four years. You'd have to see if your Montgomery Ward agreement invoked the laws of some other jurisdiction that has a longer statute.

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Answered on 10/31/02, 9:57 am


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