Garnishment, now paid in full but collection company continues to take money

[PixelRic]

Jurisdiction

Kansas

My check was garnished but the garnishment was paid in full after the second paycheck. They have now continued to take the garnishment even though it has been paid in full. I contacted them the first time they took the money after it was paid in full and they said they would stop the garnishment and return the money that they took via check. I just got my check, and not only did they not return the money they said they would they took the garnishment out again... What can I do? is it legal for them to continue to take money after they have been paid and acknowledged that they were over paid. then continue to collect the garnishment. I am looking for a solution to stop the garnishment and find out if there any legal action that i can take against them for continuing to collect money that is not owed to them??

 

[army judge]

What can I do?

You should contact the collector asking for written proof that they have submitted the necessary 'paperwork' to stop the garnishment.

Depending on KS state laws, the collector's attorney likely has to also file a motion, requesting an order to terminate the garnishment with the court.

A satisfaction and release will then be provided to your employer. Garnishments can take take time to legally enforce and more time to terminate, but a few pay periods is outrageous, in my opinion.

For your troubles, ask that the creditor to also have their counsel motion the court to vacate the judgment against you, rather than merely filing a satisfaction of judgment - it looks better on your credit report in the future.

If you do not get a satisfactory response within a day or so of speaking with the creditor, inform the creditor that unless the garnishment order is terminated quickly, you're going to retain an attorney to force a turnover of ALL funds due, as well as the costs and fees incurred to get back what is rightfully owed you.

Best of luck; I hope you get this is remediated quickly and all monies owed you are returned sooner, rather than later.

 

[Zigner]

Garnishment orders have a total amount. If your paycheck is still being garnished after that amount has been met, then it's your employer that you need to speak to, not the creditor.

EDIT: To be clear, you have no legal action against the creditor because it's not the creditor that is taking the money out of your check. If they don't return the overpayment voluntarily, then you may need to head to court about it, but that's not what's going on at this point.

 

[Tax Counsel]

Garnishment orders have a total amount. If your paycheck is still being garnished after that amount has been met, then it's your employer that you need to speak to, not the creditor.

The creditor typically must first initiate the action to stop the wage garnishment. Until it does that, the employer may well be obligated to keep deducting the garnishment amount as the garnishment requires. For example, while IRS wage levies will state a total amount due as of a certain date on the wage levy form, the employer cannot rely on that as the total figure to be attached because interest and late payment penalty continue to accrue until it is all paid. So the figure on the levy form won't be entirely accurate and the employer cannot rely on that. The IRS instructions to the employer state that they are obligated to continue the levy until the IRS sends a release of levy. If the IRS overcollects, it is the IRS that has to refund the extra taken out, not the employer. That may well be how this state law garnishment works too.

 

[Zigner]

The creditor typically must first initiate the action to stop the wage garnishment. Until it does that, the employer may well be obligated to keep deducting the garnishment amount as the garnishment requires. For example, while IRS wage levies will state a total amount due as of a certain date on the wage levy form, the employer cannot rely on that as the total figure to be attached because interest and late payment penalty continue to accrue until it is all paid. So the figure on the levy form won't be entirely accurate and the employer cannot rely on that. The IRS instructions to the employer state that they are obligated to continue the levy until the IRS sends a release of levy. If the IRS overcollects, it is the IRS that has to refund the extra taken out, not the employer. That may well be how this state law garnishment works too.

From the employer's perspective, the garnishments that I have seen provide a total amount to be garnished (while allowing for an additional nominal fee for each paycheck that is garnished).

 

[Tax Counsel]

From the employer's perspective, the garnishments that I have seen provide a total amount to be garnished (while allowing for an additional nominal fee for each paycheck that is garnished).

But unless you are in the OP's city/county that experience won't necessarily match what the OP's state and locality require. That was the point of explaining the IRS rule. Every jurisdiction has its own rules for this stuff, and there is no substitute for looking at the actual law or regulation that applies.

 

[Zigner]

But unless you are in the OP's city/county that experience won't necessarily match what the OP's state and locality require. That was the point of explaining the IRS rule. Every jurisdiction has its own rules for this stuff, and there is no substitute for looking at the actual law or regulation that applies.

Fair enough.