What can I do if the interest on my garnishment is more than the amount they are garnishing me?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What can I do if the interest on my garnishment is more than the amount they are garnishing me?
I am being garnished for a car that was repossessed. The balance after auction was around $4,000. After several years of being garnished the balance is now $16,000 meaning the interest they are charging is higher than my garnishment. What can I do?
Asked on June 11, 2012 under Bankruptcy Law, Oklahoma
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
When a motor vehicle is repossessed and the dealer gets less for the car at auction or resale than what you still owed on it, the banker can go after you in a state that allows for deficiency judgments for the amount of the deficiency. Here, you owed $4,000.00 but what they did was either charge a usury interest or simply put, fraudulently charge you for the price of the car again. Contact the entity who handles criminal investigations of these types of entities (try your state attorney general) and also consider disputing the charges on your credit report so that the entity has to prove this debt and either be required to stop the wage garnishment and/or also pay you back.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.