How Can I Prevent Wage Garnishment & Keep CR Clean

[JohnCredit]

Twenty years ago, I defaulted on a Direct Student Loan. About 6 weeks ago, in February, the Dept. of Ed. sent me a letter stating that they would be starting an Administrative Wage Garnishment if I did not appeal in 30 days. I only received the letter today, April 8, becuase they send their letters to me to a PO Box I gave them years ago. I do not check it very often.

 

That loan is no longer on my credit report, having dropped off several years ago. The loan is currently held by the Dept. of Ed and is being serviced by VanRue. The amount is $3700, including interest and penalties. I haven’t paid anything on it or had any contact with them in almost twenty years, even though they send me a letter from time to time, and occasionally leave a message for me on my answering machine.

 

I want to avoid wage garnishment and keep my credit report clean. I checked my CR today and no wage garnishment appears (should it?), nor does the loan. I am willing to pay in installments or pay the full amount, but want to get the best deal I can, while keeping any negative information off my CR. I, also, know I lost certain rights because I did not reply to their letter within 30 days.

 

Does anyone know how to proceed and the strategy I should use? Are there any loan consolidation options like Income Contingent, or a Loan Rehabilitation program available to me at this point, and, if so, which would be better? PLEASE HELP!!! Time is running out. I’m sure I must call within the next day or two to have any chance of preventing wage garnishment.

 

THANK YOU VERY MUCH!!

[LynnInMN]

Unfortunately your wage garnishment is probably already in the works. Once the 30 day notice is sent, legally the CA must follow thru or they are guilty of breaking the law. When I managed an AWG unit, it no response was received by the close of business on day 30, on day 31 the garnishment notice was sent to the employer.

[Cheech]

John, find out if wage garnishment has already started. If it has, then do a search here for "wage garnishment appeal." You can appeal the garnishment and then set up a rehab or repayment plan. Definitely get on this and let us know what's going on.

 

Good luck

[LynnInMN]

John, find out if wage garnishment has already started. If it has, then do a search here for "wage garnishment appeal." You can appeal the garnishment and then set up a rehab or repayment plan. Definitely get on this and let us know what's going on.

 

Good luck

<{POST_SNAPBACK}>

 

 

The rules only allow you to appeal the garnishment for the 30 day period once that specific notice has gone out. If you do not respond, they must follow thru with the letter to the employer.

[Cheech]

Thanks, Lynn - I didn't know that. So is there a way to stop the garnishment if you miss that 30-day window?

[LynnInMN]

Usually not. We had to make several phone attempts to verbally notify the borrower of "impending" garnishment after verifing employment. If that failed, the garnishment notice goes out, giving the 30 day window. We were instructed to be fairly flexible during that window, based on the employment verification and a financial statement. Obviously someone who makes $5000/month would not get a $25/month payment plan...we were reasonable but by the time garnishment roles around we had to do what was in the best interest of the client. Collectors are not paid commision in the garnishment unit since the payments are involuntary..the agency commision by this point was about 6% which barely covered the massive amount of paperwork and staffing.

[centex]

For $3700, I think I would check with my local bank Monday AM and just do a signature loan and be done with it.

[Cheech]

John - any update on your situation?

 

I had some time this evening and did a search of prior posts. It is NOT too late to appeal your garnishment. Here are links to two excellent posts by TxQuiltGirl - a long-time regular here and a super source of info...

 

http://creditboards.com/forums/index.php?s...age+garnishment

 

http://creditboards.com/forums/index.php?s...57341&hl=appeal

 

She managed to get her garnishment lifted after it went into effect thru the appeal process. So don't give up hope. Let us know how it's going and what you are doing. It's posts like yours that give others info and hope.

 

HTH - Cheech

[TxQuiltGirl]

John, find out if wage garnishment has already started. If it has, then do a search here for "wage garnishment appeal." You can appeal the garnishment and then set up a rehab or repayment plan. Definitely get on this and let us know what's going on.

 

Good luck

<{POST_SNAPBACK}>

 

 

The rules only allow you to appeal the garnishment for the 30 day period once that specific notice has gone out. If you do not respond, they must follow thru with the letter to the employer.

<{POST_SNAPBACK}>

 

 

While I see that Cheech has already pointed it out, I will reiterate that this is not necessarily correct information. I was success in having a garnishment lifted AFTER it took effect - about two months after, to be exact. The thing is, I was making payments in addition to the garnishment during the time I waited for an answer. As soon as I found out about the garnishment, actually, I started making those payments.

 

In my case, those payments were seen as "goodwill" payments and the gentleman very kindly lifted the garnishment. I know he didn't have to, but he saw that I was making an effort.

 

I will be finished with "rehab" in July; I can hardly wait!

[centex]

Along with Quilty...my garnishment was also lifted after being in effect for several months...the thing is that it takes finding someone willing to discuss what was going on, and in my case, that was the Ombudsman's office. They also fixed the credit reporting before the first rehab payment had even posted.

[LynnInMN]

You are lucky if you garnishment was lifted...however, I just got of the phone checking with an AWG manager and that is not what the rules state. The only reason to lift a garnishment is economic hardship and it has to be fully documented and proven. This is coming directly from the DOE handbook. If CA's are stopping garnishments and are audited by the client for doing so, the garnishment could be started again. I am simply stating what the actual rules are. She did state that the Texas Guarantee Agency is so screwed up ...they have major due diligence and compliance problems.

[TxQuiltGirl]

You are lucky if you garnishment was lifted...however,  I just got of the phone checking with an AWG manager and that is not what the rules state.  The only reason to lift a garnishment is economic hardship and it has to be fully documented and proven.  This is coming directly from the DOE handbook. If CA's are stopping garnishments and are audited by the client for doing so, the garnishment could be started again.  I am simply stating what the actual rules are.  She did state that the Texas Guarantee Agency is so screwed up ...they have major due diligence and compliance problems.

<{POST_SNAPBACK}>

 

 

Lynn, so VERY sorry that you disagree with what is MY OWN EXPERIENCE. However, you don't know all the answers, and you aren't always right. This is a case where your information is not correct. It's obvious that I am not the ONLY one who has had a garnishment lifted.

 

AND FYI ... I also checked with the DOE, who SUGGESTED that I appeal the garnishment, even after it had started. It was someone at the DOE who made that suggestion, who put me in touch with the Ombudsman AND TGSLC.

 

People here don't need a hard, cold answer, Lynn. They are looking for HOPE and assistance. My own case gives them reason to at least try; you are discouraging people from attempting to even try. That's a pretty standard collection agency stance, if you ask me.

 

And really, WHY would you want to try to blow the whistle on people who are only trying to help others?!?! Why would you call someone who can potentially cause trouble for TGSLC??? Geez, what a cold, callous, CA thing to do.

 

And finally, I checked with DOE AFTER the garnishment was lifted, just to make sure that it can't be reinstated. Two different people in that office ASSURED me that as long as I make payments, I will not have to deal with garnishment again. Are you saying they lied to me?

Edited April 20, 2005 by TxQuiltGirl

[LynnInMN]

You are lucky if you garnishment was lifted...however,  I just got of the phone checking with an AWG manager and that is not what the rules state.  The only reason to lift a garnishment is economic hardship and it has to be fully documented and proven.  This is coming directly from the DOE handbook. If CA's are stopping garnishments and are audited by the client for doing so, the garnishment could be started again.  I am simply stating what the actual rules are.  She did state that the Texas Guarantee Agency is so screwed up ...they have major due diligence and compliance problems.

<{POST_SNAPBACK}>

 

 

 

 

And really, WHY would you want to try to blow the whistle on people who are only trying to help others?!?! Why would you call someone who can potentially cause trouble for TGSLC??? Geez, what a cold, callous, CA thing to do.

 

 

<{POST_SNAPBACK}>

 

Dont make assumptions. I spent a year as a Garnishment Manager, with the DOE manual under my elbow. I know a lot of people in the industry who I will call to question for information on general terms, not to whistle blow. I spent a year as a Garnishment Manager, with the DOE manual under my elbow. Two of them are very close friends who I used to work with. And for your info, TGSLC has been screwed up for years...they are known thoughout the industry as a problem guarantee agency. And quite frankly, a lot of times I dont have a lot of sympathy for defaulters. People blow off their loans and then whine about the fees, penalties and interest. I came to this board to share my experience in the industry. I guess I wont bother anymore.

[TxQuiltGirl]

You are lucky if you garnishment was lifted...however,  I just got of the phone checking with an AWG manager and that is not what the rules state.  The only reason to lift a garnishment is economic hardship and it has to be fully documented and proven.  This is coming directly from the DOE handbook. If CA's are stopping garnishments and are audited by the client for doing so, the garnishment could be started again.  I am simply stating what the actual rules are.  She did state that the Texas Guarantee Agency is so screwed up ...they have major due diligence and compliance problems.

<{POST_SNAPBACK}>

 

 

 

 

And really, WHY would you want to try to blow the whistle on people who are only trying to help others?!?! Why would you call someone who can potentially cause trouble for TGSLC??? Geez, what a cold, callous, CA thing to do.

 

 

<{POST_SNAPBACK}>

 

Dont make assumptions. I spent a year as a Garnishment Manager, with the DOE manual under my elbow. I know a lot of people in the industry who I will call to question for information on general terms, not to whistle blow. I spent a year as a Garnishment Manager, with the DOE manual under my elbow. Two of them are very close friends who I used to work with. And for your info, TGSLC has been screwed up for years...they are known thoughout the industry as a problem guarantee agency. And quite frankly, a lot of times I dont have a lot of sympathy for defaulters. People blow off their loans and then whine about the fees, penalties and interest. I came to this board to share my experience in the industry. I guess I wont bother anymore.

<{POST_SNAPBACK}>

 

This board isn't about being hard on people, Lynn. That's something I don't think you've ever learned. We're not here to say, "Well, you shoulda paid your bills." I think you are the one making assumptions here, NOT ME.

 

Give all the "advice" you want to give, but I want people to know that everything isn't as bleak and hopeless as you sometimes paint the picture. Are you telling me that you've NEVER had any credit problems in your life?? Are you saying that you've paid all your bills on time and never missed anything?? If so, good for you! But the reason MOST people are here isn't to impart their superior wisdom upon others, but because they are looking for HELP. You aren't helping much sometimes with the kind of posts like the one you used to answer mine. And when you post, be prepared for people to call you on erroneous/suspect information. It's the way we keep it honest here.

 

As for you not having any sympathy for people, that is extremely evident; you need not point that out to me or anyone else. It's sad, though, that you have taken this stance, because you COULD be very helpful to some folks.

[direred]

I spent a year as a Garnishment Manager, with the DOE manual under my elbow.  Two of them are very close friends who I used to work with.  And for your info, TGSLC has been screwed up for years...they are known thoughout the industry as a problem guarantee agency. And quite frankly, a lot of times I dont have a lot of sympathy for defaulters.  People blow off their loans and then whine about the fees, penalties and interest.  I came to this board to share my experience in the industry.  I guess I wont bother anymore.

<{POST_SNAPBACK}>

 

Well, I guess you learned absolutely nothing (especially not sympathy) from your recent filing of bankruptcy, then.

 

http://creditboards.com/forums/index.php?showtopic=83892

 

What you may not have realized was that it was the complaints of readers of the SL forum ABOUT YOU that led to the addition of another moderator for the forum.

[ozzy500]

Hate to say it but I agree fully with txquiltgirl 100%. it seems as though you still work as a CA rep with the type of replies you offer

 

You do seem to know somewhat about this topic, but it almost seems like your answers are the same as id hear from CA, & i could care less about a CA's and their reps.

 

I need more info from people who is wise with FDCPA & FCRA to help me and others better with our defaults

[LynnInMN]

This will be my last post. Yup I filed BK...I suffered a brain anuerysm and I was out of on medical leave for a year. I worked with my creditors as long as I could...however I did not whine to them like most debtors do.

 

I hear how many of you bitching about things you brought on yourselves. Why should the creditors update your credit reports to delete negative TL just because you now want to buy a house. As I see it, this board teaches you how to work the system, to circumvent the rules. The CA's and collectors are not the bad guys...they are doing a job. You spend 40 hours a week listening to excuses for not paying bills, or debtors slamming phones. I came to this board to help people deal with their defaults and abusive collectors. Off this board I have helped several individuals. But no more. You have to earn good credit...most of you simply fake it.

[TxQuiltGirl]

This will be my last post.  Yup I filed BK...I suffered a brain anuerysm and I was out of on medical leave for a year.  I worked with my creditors as long as I could...however I did  not whine to them like most debtors do. 

 

Bye.

 

I hear how many of you bitching about things you brought on yourselves.  Why should the creditors update your credit reports to delete negative TL just because you now want to buy a house.  As I see it, this board teaches you how to work the system, to circumvent the rules.  The CA's and collectors are not the bad guys...they are doing a job. You spend 40 hours a week listening to excuses for not paying bills, or debtors slamming phones.  I came to this board to help people deal with their defaults and abusive collectors.  Off this board I have helped several individuals.  But no more.  You have to earn good credit...most of you simply fake it.

<{POST_SNAPBACK}>

 

 

Nobody asked your opinion of what's going on here. But if it bothers you sooooooooo much, why do you keep coming back?? No one has begged for your advice from the standpoint of the CA. No one here is "working the system" or "circumventing the rules." We are working well within the bounds of the law, and if you can't understand that, you really don't need to be here to "help" people.

 

As for you "helping with defaults and abusive collectors," I have seen posts from you where YOU are borderline abusive. Your attitude of "too bad, so sad" doesn't cut it here. As I pointed out before, this board is NOT about telling people where they screwed up. It's about helping one another and being just a little empathetic. I don't think you have an empathetic bone in your body, which is sad, considering that you yourself have filed BK as Red pointed out. Good luck "earning" your good credit back, btw.

 

Whether or not you ever actually came out and said it, you view most of the people here in the typical CA fashion - deadbeats who just need to pay their bills. I don't think we really need that kind of attitude around here, and I cannot say that I'm sorry to see you go.

[direred]

People screw up all the time. Sometimes, that's what it takes for them to learn.

 

However, in many cases, it's not the screwup of the person, but rather the company that's the problem (this forum is something of an exception; the vast majority of the threads do seem to be about people who have

See, one of the problems is that IF everything had been reporting accurately, my creditors and I wouldn't have a problem. The reason I got student lates removed was simply that they're erroneous (my school has record that it sent the deferment; the clearinghouse has record, and yet my loans weren't put into a deferred state -- that's not MY fault). I still have other erroneous lates that were NOT removed. Yet.

 

I'm genuinely sorry you had a hemorrhagic stroke; it happened to be what my first husband died from -- and all my credit problems stem from his stroke and my grief over his death.

[Cheech]

*sigh* well, I can't say that any of this is very cheerful. It really breaks my heart to see people being judged and thought of as deadbeats. I realize that there are rules in the student loan industry. But every rule has an exception - there are always extenuating circumstances or perhaps sometimes you luck up and find a person with a compassionate heart. It'd be an awfully cold, cruel world if that wasn't occasionally the case.

 

I know for me, all I needed was a second chance - and to *know* that such a thing was possible. Yes, I ignored letters. Yes, I should have followed the rules and kept in touch and paid on time. But I didn't, and I won't go into my own sordid saga about why. Suffice it to say, I buried my head in the sand. I ignored (incredibly rude and condescending) calls from CAs. Does that make me a deadbeat and a whiner? I don't think so - mostly I was just scared and had no idea how to get out of the mess I'd gotten myself into.

 

One day I read a post on a credit forum about rehab. I can't begin to tell you the hope that gave me. Just knowing that there was a way out of my student loan mess helped me to get things on the right track again. I entered rehab and have never looked back. Now my life is in a good place and I'm able to pay. That wasn't always the case though, and I'll forever thank God for those who took the time to be kind to me and to help me. I'm far from an expert, but I feel it's my obligation to give back what was given to me.

 

I don't think any of us here are telling people to do something illegal or immoral. But this is a pro-consumer board and we are trying to just help people. None of us have all the answers, that's for sure--me especially. And there are no guarantees. I try to do my best to spend time reading and researching all that I can, but I don't know everything. I'm sad, I think, because it hurts to see someone with so much knowledge who feels such disdain for the posters here.

 

It's the posters here who truly make this forum a great place to share info. If no one ever shared their story, then others couldn't learn. Perhaps this is the time to really invite people to post, to research, to share, and to help each other learn.

 

I'm sorry - it's late and I'm rambling. I really try to appreciate every side of an equation. In the end, I guess I'm just the sort of person who roots for the underdog, since I was there myself for so long.

 

I think it's time to put this subject to rest and get on with the purpose of this forum--to help people who need it, to learn from each other, and to celebrate even small victories.

[cotterpin]

ENOUGH!!!!!!!!!!!!!!!

 

Enough with the personal attacks and bashings.

 

FOR ALL:

 

Everyone who comes to these forums looking for help may have had difficulties in their lives that may have led to their financial downfall. Whether it be medical problems, stupidity, identity theft, unemployment etc, we are NOT here to judge that. With the exception of probably purposely committing fraud, I don't think anyone INTENDED not to pay their bills.

 

The purpose of these boards is to get people back on the RIGHT track. Sometimes a simple "pay your bills" isn't the answer.

 

I agree, Cheech is an excellent lead, IMO. Cheech was not put in because of Lynn, she was promoted because of her expertise and contributions and because of fla-tans busy schedule keeping him from here.

 

Re Lynn:

 

I also think Lynn has a lot to offer, but yes, may come off as "angry" at times. I know from my OWN job in Medical billing/collections that sometimes it's difficult to separate yourself from "work mode" and "consumer mode". The only thing I can offer Lynn, is to try and take some of that knowledge you have and think about what YOU would do in the OP's shoes, rather than answering like you would at work. It's hard to do, but it's also satisfying to help people, especially when you remember how people wouldn't help you. Fav Sassy once told me long ago, and I live by it now "take off the employer beanie and put on the consumer beanie". Lynn, try to remember when you're reading peoples threads, how discouraging it was when people referred to you as "deadbeat" because you had a tragidy happen. Take the advice how you see fit, it's not meant as criticism or to be hurtful.

 

Unfortunate situations occur to people all the time. Like I said, we are not here to judge, we're here to help people get on the road to better credit.

[fla-tan]

I have unlocked this topic so that I might set the record straight. I will relock it after having my say. Cheech was offered the position of Forum Lead for two reasons. The first reason was because Cheech had earned it. She has been a fantastic contributor for quite some time. She works very hard to be accurate in all her responses and I feel that she has done a phenomenal job. In addition, because of my other activities, I have almost no time to spend here and all the forums need to have an observer that can spend time in the forum. Cheech was gracious enough to accept our offer and request.

 

 

fla-tan

Forum Moderator