Garnishment Practices: Has the Dust Settled or Is It Still Flying? — The Consumer Finance Podcast
Takeaways for Banks from the CFPB’s Recent Consent Order on Garnishment Orders
On April 15, the Minnesota House of Representatives passed the Commerce Policy Omnibus bill, which includes key provisions of the Minnesota Debt Fairness Act. Minnesota AG Keith Ellison supports this bill and celebrated its...more
When a consumer fails to pay a debt, the creditor may engage in proceedings to collect, which may result in a court issuing a garnishment notice directing a bank to freeze and turn over funds in the consumer's deposit account...more
Garnishment is a tool used by judgment creditors to collect on a judgment owed by the debtor-defendant. Property subject to garnishment includes monetary obligations owed by a third party to the debtor-defendant. In a recent...more
On April 9, 2020, the Supreme Court of Texas issued Emergency Order No. 20-9054 related to proceedings to collect “consumer debt,” as defined under the Texas Finance Code. With the exception of the Order’s provision regarding...more
Years ago, I had to hire an out of town collection law firm to collect a debt from a client. The client didn’t respond to my lawsuit and I was awarded a default judgment against them. The problem with hiring this firm is...more
Banks will no longer block new amounts credited to the debtor’s accounts after a competent court decides upon the suspension of the enforcement proceedings, following recent decision of the High Court of Cassation and Justice...more
Insurance fraud negatively impacts everyone. It drives up the costs of doing business, along with everyone’s premiums. In fact, according to the National Insurance Crime Bureau, insurance companies saw a 102% increase in this...more
DC Mex Holdings LLC v Affordable Land LLC and Dale Fuller, ___ Mich. App. ___ (July 25, 2017), Case no. 332439 - Michigan’s Court of Appeals recently issued an opinion interpreting a statutory provision exempting insurance...more
There’s a storm brewing in the Southern District of Florida, and plaintiffs’ attorneys are hoping it rains. Last week, a federal magistrate judge issued an order for the parties to submit supplemental authority on the...more
The CFPB has filed an amicus brief in support of the plaintiff in Arias v. Gutman, Mintz, Baker & Sonnenfeldt, PC and 1700 Development Co., a FDCPA case on appeal to the U. S. Court of Appeals for the Second Circuit. In its...more
In the course of collections activities, a creditor can become singularly focused on aggressively pursuing enforcement of a debt by levying against the debtor’s property or by demanding and receiving payment from the debtor....more
On July 8, 2016, the D.C. Circuit clarified the limits of the Federal Debt Collection Procedures Act (FDCPA). The Court held under D.C. and federal law that the government cannot satisfy a judgment against a co-owner and...more
On September 8, 2015, United States District Judge Marvin H. Shoob declared Georgia’s statutory garnishment process unconstitutional in Strickland v. Alexander, No. 1:12-CV-02735-MHS (N.D. Ga. Sept. 8, 2015) (granting summary...more