Debt validation is the process of proving that you owe money to a creditor or debt collector. You can request debt validation if you believe a creditor or collector is trying to claim money you do not owe. However, once a creditor or debt collector gets a wage garnishment order against you, debt validation usually isn't an option.
The Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act is a law that dictates the conditions under which debts may be collected. It is designed to provide some protection to borrowers. Under this regulation, a person or company that believes you owe a debt you aren't paying has to sue you to get a garnishment order and deduct money from your wages. The regulation further states that you have 30 days from the date you are notified of the intent to sue to request a debt validation. After the expiration of the 30-day period, you give up your right to request a validation. This regulation applies only to third-party collectors, so you don't have the right to request validation from an original creditor.
What Garnishment Means
A creditor or collection agency cannot get a garnishment order until it formally sues you in court. The judge decides whether the creditor or collection agency has sufficient evidence that you owe the debt at that time. If the judge finds in the creditor's or agency's favor, the creditor or agency may ask the court to issue a garnishment order. Thus, if you already have received a garnishment order, it means the collection agency or creditor already has been able to show sufficient cause for the garnishment, thus validating the debt.
Appealing Garnishment Orders
If a creditor or collection agency has procured a garnishment order against you, but you still feel you don't owe the debt, you have the right to appeal the judge's decision. However, this can be time-consuming. Furthermore, the creditor or agency does not have to stop garnishing your wages until the courts issue a cessation order. If a judge eventually overturns the garnishment order, you may be able to get some or all of the garnished funds back.
The Bottom Line
In general, if your wages already are being garnished, you do not have the right to request debt validation. This is why it is so important for you to ask for the validation immediately after your creditor or collection agency threatens to sue. However, you always have the right to appeal the lawsuit decision that led to the garnishment, so you shouldn't necessarily give up if you truly believe you are being garnished without cause.
0 comments:
Post a Comment