Thank YOU JCLISTERS! I of course after much research did contest it. This was basically a shakedown. I am actually angry that the bank/credit company tried to support the collection agency....when they had discharged/sold the debt long ago.

Not only did they not file wage garnishment with the court but .....it will be very hard for them to file one in the future....after having backed down.

THANK YOU ALL.

It's either a scam or it's a scummy collection agency that's just fishing for bullshit that's already been paid off. Especially if they can't tell you how much is owed or why.

Ask them for proof in writing, detailing how much is owed, what was charged when and where, what interest charges accrued, and how they acquired the rights to collect the debt. Chances are they won't be able to provide any of that.

Ditto on checking annualcreditreport.com. That's the free one via federal regulation which doesn't go into much detail but at least gives you an overview.

Do not respond back directly to the people that sent the letter. These are companies that bottom feed looking for old debts on credit report. They claim to be representing the bank, but that debt was sold off years ago to the group you settled with and probably was not closed properly.

The minute you reply back to them, you are acknowledging the debt is still open. Better to contact a lawyer and get advice.

Exactly what JCman24 said. Read this also: http://www.nolo.com/legal-encyclopedia/debt-validation.html

Plus, look up your credit report online. This should have evidence the debt was settled IF it was reported accurately. https://www.annualcreditreport.com/index.action

Good luck.

Call back and tell them to send you a vlaidation notice. Conduct all further correspondence by mail. If it's valid they will send it to you and it will contain all of the information about the debt. If they refuse it's probably a scam. Look up debt validation on the internet.

Almost 15 years ago, like too many other college age kids, I ran up credit debit. I learned a valuable lesson and since then have a very high credit score, have one credit card that i use only for major purchases or emergencies. I pay usually in cash or use debit. I have no major debt and am financially okay.

The other day i received a notice from an attorney indicating that they would file for wage garnishment with in 10 days if i did not dispute the matter.

I was of course astounded. I had 3 credit cards. Two of which i settled and one i paid off in full. The ones i settled with a collection agency were 500 and 600 dollars...none of my outstanding debt went over 1000.

I called the bank that issued the credit card and they did tell me the attorney was representing them. They would not tell how much they were seeking or why....even after explaining to them i had settled this years ago.

My problem is that i don't have a record of that transaction...i checked with my bank that i paid the debit through unfortunately their records dont go that far.

What can i do? My main worry is that if this garnishment goes through it will hurt my credit especially since this fall i plan on applying to grad school.

Also, the bank that issued the credit card told me they discharged the debt ins 2006, isn't the statue of limitations preclude them for going after me in court?

Again any insight is appreciated.