Expert: Ontrack Financial Group llc - 11/6/2008

Question
QUESTION: My husband and I have a credit card through US Bank. We are not sure of the KY cc laws. In May my husband was injured and term'd from his job so we have had a hard time with bills. Since June we have not been able to pay on this account because we have been paying mortgage and utilities so that they do not get cut off. We are now receiving calls telling us that they are going to start research of employment and asset records as of tomorrow. Can they contact my employer or garnish my income? As soon as we are able, if he can get his Workman's comp started or a settlement with the company that caused the accident, we had planned on trying to make a settlement, will US Bank do this? They want to set up payment arrangements; however, I can't pay the amount that they want. What are my options?

ANSWER: Dear Kathy,

Thank you for your question.

The account is now being forwarded to the first collection agency as it passes the 6 month past due mark.  This is known as being charged off.

After being placed with the collection agency the account is scrubed and scored for possibe information used to collecting this debt.  The account is then placed with a seasoned debt collector that uses intimidation in order to collect the debt.

If you instruct the thrid party debt collector not to contact your employer, they must cease communication.  

In order to obtain a garnishment they must file suit and win.  Unless you have been notified in one form or another by the courts.  Chances are, the debt collector has violated multiple federal and state laws governing their practice.

Right now there are a few banks that have stopped all settlements( the debt settlement industry is begining to feel the pinch) , according to my collection industry contacts US Bank is on the fence.

There are a few options opened to this situation.  How much is the total debt?

Eddie Saleh

Ontrack Financial Group llc

www.OntrackFinancialGroup.com/contactus.html

---------- FOLLOW-UP ----------

QUESTION: After all the fees that they have tacked on, we are up to approx. $9,500.  We have requested multiple times that this guy quit calling me at work and he continues to call a couple times a day. Is that what you were referring to as violating federal and state laws.

Answer
Dear Kathy,
 
He can call your employer to request verification of employment only.  Once you advise him not to contact you at your POE (collection term for Place of Employment ) the debt collector violated federal and state law.

The debt collector used another intimidation tactic when he stated he was going to contact your employer and start an asset search.  Again it may be considered illegal intimidation and can be considered harassment. (Harassment is not defined within the federal law)   

Kathy, if you would like for us to speak about this further including discussing some options and resources available to you please visit us at

https://www.ontrackfinancialgroup.com/contactus.html

or call me directly at

888-686-6834
ext 8000

Best Regards,

Eddie Saleh

Ontrack Financial Group llc