I had an agreement with FedLoans (who I thought was a branch of the Dept of Ed) to pay off my student loans and they said that would avoid offset of my tax return. I thought they consolodated all my loans as I had asked. They were missing two that were with another company EMCS. Without warning they garnished my tax return (or the Dept of Ed) They were supposed to notify me. The only notice I got was from the Treasury dept way back in August, saying that tax garnishment was a possibility and instructing me to arrive at a satisfactory payment arrangement, which I did, with the only company who had contacted me recently, Fed Loans along with AES, and Performant. AES is the lender, Performant the collection agency and Fed Loans I guess the company that services the loan. Is what they did legal. Other than claiming hardship, is there a faster way to get my money back?
TO CLARIFY WHO GARNISHED MY TAX RETURN WAS THE OTHER COMPANY ECMC WHO HAD TWO OF MY 12 LOANS THAT FED LOANS WAS SUPPOSED TO BUT DIDN'T CONSOLIDATE. ECMC DID NOT ADVISE ME OF THE GARNISHMENT. THE ONLY WARNING I GOT WAS FROM THE TREASURY BACK IN AUGUST SAYING I COULD BE GARNISHED. WHEN I SETTLED UP WITH FEDLOANS THEY SAID THEY WOULD BE SUSPENDING THE GARNISHMENT. ECMC AGAIN WHO HADN'T CONTACTED ME IN OVER 6 MOS AND WHOM I THOUGHT WAS JUST ANOTHER COLLECTION AGENCY WITH THE SAME ACCOUNTS, GARNISHED MY TAX RETURN. I'M WONDERING IF THIS LEVEL OF ADVANCED NOTICE COMPLIES WITH THE LAW
This is poorly explained. Sorry. Here is the genealogy of my loans:
AES via FedLoans via performant 12 loans $22,000 payment agreement spared me offset of my tax return
ACS via ECMC $8,600 2 loans, not a peep in a long time, garnished my tax return. Through their own admission only notice was from the Treasury dept back in August saying my tax return COULD get garnished. I didn't know about these guys and assumed the first company AES/FedLoans/Perfromant had all my loans. ACS/ECMC did not follow due process in not advising me of the actual garnishment.
I would rather not have to wait to get my money back thru a claim of hardship. I should think if they took it illegally, I should get it back right away.
Thank you so much for using JustAnswer.com. I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered. PLEASE use REPLY to EXPERT if you would like more information or if you feel something was not included in your answer.
Kindly remember the ONLY WAY experts receive any credit at all for spending time with customers is if you click on OK, GOOD or EXCELLENT SERVICE even though you have made a deposit or are a subscription customer. YOU MUST COMPLETE THE RATING FOR THE EXPERT TO RECEIVE ANY CREDIT, if not the site keeps your money on deposit.
Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.
PLEASE NOTE WELL WE ARE DEALING WITH LAWS OF 50 STATES PLUS FEDERAL LAWS, AS WELL AS DEALING WITH OTHER CUSTOMERS, SO PLEASE BE PATIENT AND BE ASSURED YOU ARE NOT BEING IGNORED.
There can also be a delay of an hour or more in between my answers because I may be taking a break.
You can always request me through my profile at http://www.justanswer.com/law/expert-paulmjd/ or beginning your question with “For PaulMJD…”
Regardless of The Fair Debt Collection Act or who does the actual garnishment, the law clearly states, the debtor must be receive notice of the actual garnishment 20 days prior and be given an option to a hearing. If not due process was
Notice of the actual garnishment, not the possibility of garnishment needs to be sent. I did contact the only creditor who contacted me and made arrangements. The one who actually garnished my tax returns made no effort to collect and did not notify me. "Fortunately, the Constitution of the United States provides a general guide to due process protections. More specifically, Congress provided some guideposts when it passed the DCIA in 1996. For example, the administrative offset section of the DCIA provides that agencies may offset debts only after giving written notice of the type and amount of the
claim, the intention of the head of the agency to collect the claim by administrative offset, an explanation of debtor’s rights, an opportunity to inspect and copy the records of the agency related to the claim, an opportunity for a review, and an opportunity to make a written agreement with the head of the agency to repay the amount of the claim"
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).