What happens if a debt collector garnishes more than you owe?
Summary
If a debt collector takes more money from your paycheck or bank account than you actually owe, the extra money does not automatically get returned. To get the overpayment back, you need to act quickly by checking your debt balance, asking for a detailed account from the collector, and possibly involving the court.Key Facts
- Debt collectors can garnish money from your wages or bank account to pay off debts.
- Sometimes, the amount taken can be more than the actual debt due to added interest, court costs, or mistakes.
- Overpaid money is not automatically refunded to you.
- You should compare the garnished amount with the current debt balance, not just the original amount owed.
- Request a full statement from the creditor or collector showing how your payments were applied.
- If you find an overpayment, contact the creditor or collector to ask for a refund.
- If the creditor refuses, you might need to ask the court to intervene to recover the extra money.
- Different states have different rules and timelines for fixing garnishment errors, so acting quickly is important.
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