QUESTION
Can a collection agency garnish more out of paycheck than the judgement amount?
Asked on Oct 14th, 2011 on Collections - Arizona
More details to this question:
We paid the judgement in full, but they are now saying we owe them $300 more than the judgement amount. Is this legal? We were never served papers to appear in court in the first place (delived to old address) and only recieved notice after the judgement of garnishment. The papers recieved for garnishment did not say they could do this.
1 ANSWER
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A Judgment Creditor is legally allowed to collect only the amount of the Judgment, any accrued interest, and any additional costs incurred in serving the levy or wage garnishment. You have a right to a hearing on any such levy or wage garnishment; but the generally a hearing must be requested within 10 days of the service of the levy or garnishment. However, if a Judgment Creditor appears to be taking more money than legally allowed on a levy or garnishment, you always have a right to contest such improper action by requesting a hearing.
Answered on Dec 12th, 2011 at 2:32 PM