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Question
How can I prevent "sleazy" collection agency, (they
wouldn't even give me their address on the phone) from
garnishing my bank account, for what I consider to be a
highly illegal "tax"?
I ordered some cheap cigarettes for a friend without a
credit card. Governor Pawlenty, (R-MN) imposed a 75 cent
per pack, "Health Impact Fee" (he promised 'NO NEW TAXES")
The Mn. Supreme Court ruled it unconstitutional, but he
immediately appealed and won. (hmmm, I wonder who got paid
off?) No money was EVER refunded.
It was a simple deal, a Russian company that sold cheap
sold cheap cigarettes was paid in full, my buddy was happy,
done deal!.. Wrong. Got a letter from the state IRS
demanding back pay and penalties. (about $600!) I
protested, they said it wasn't negotiable, I wrote another
and heard no more, until I got the threats from the
collection agency. Short of closing my accounts, is there
any way out of this?
FYI, the tax/"fee" goes into the state general fund,
nothing "health" related.
Any suggestions?
First, are you sure this is a legitimate collection agency for the state? They must disclose certain basic information in order to verify they are legit. Send them a letter by certified mail asking for validation of this debt. They are required to send you something to verify it is valid. They cannot just garnishee your check without going through due process.
If it is legitimate there are probably no ways to avoid the tax. Government will get theirs one way or the other.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. We are well versed in Loss Mitigation practices and the legal collection process. We have helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. We actively promote Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
28 years in financial services industry as a loan officer and debt collctor. Developed bankruptcy and loss prevention manual for large finance company for manager training. 15 years as a debt counselor and consumer advocate.
Education/Credentials
Veterans sponsored OJT Manager Candidate Scool for AVCO Financial Services, Keystones to Management for ITT Financial Services, Certified Finance Management for Associates Financial Services.
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