Can a debt collecting agency free bank accounts?

A company called Buchananclark and Wells have told me that as I didn't defer my student loan (haven't earnt enough to pay it over the years; this debt is more than 6 years old) they have the power to freeze my bank accounts so I can't pay my bills and I will get in further debt, unless I pay them the entire loan. I said that that is just creating further debt, if it is true. I called his bluff, think it could be scare tactics but anyone know if there is any truth in it?

Can a debt collecting agency free bank accounts?
No, a county court judgement must be obtained and if ther debt remains unpaid, a sequestration order issued by a judge to divert funds from your bank account on the day you're paid.





the reality of this of course is that you are always prewarned of a sequestration order, giving you plenty of time to open a new account to have your salary paid into.





The exception is where a creditor successfully obtains a bankrupcy order. It would then be an offence to remove funds from your accounts after the order is signed.





Debt collection agencies employ many (unethical) tactics to scare peeps into paying. I'm not sure on the rules with student loans but I'd imagine they're pretty similet to other kinds of civil debt
Reply:It sounds very much like scare tactics to me. For a start, they would have to get a court order to freeze your bank accounts and prove that there was some criminal activity to warrant it.


They have bought the debt and the way they will make a profit is to frighten you into paying.


If you are not earning enough, there is nothing they can do. I have never understood that when you are in debt and struggling, debt collection agencies and creditors think it a good idea to put you in even more debt, therefore REDUCING their chance of getting paid.


Tell them to FOXTROT OSCAR.
Reply:A creditor can't attach/freeze a bank account without (1) a judgment and (2) a court order. If a creditor's collection agency / attorney is telling you that they can, then they are in violation of the Fair Debt Collection Practices Act (and maybe your state's consumer protection laws, if applicable) and are liable to you for mucho dinero.





Best bet would be to talk to an attorney who handles consumer litigation. You should be able to get a referral from your local county bar association.
Reply:I use to work at a collection agency and now I work at a bank. First of all, when I was a collector I would look to get 3 assests from the debtor.. 1st..bank account information ( I would allow them to send me a good faith check for even $5 just so I could get the bank account information in case we later wanted to seize their money) 2nd.. does the debtor own a house? 3rd asset would be "Just tell me where u work" so we could later garnish wages.... My advise.. if they know your bank account.. change it now! close it down and open a new account somewhere else with a different bank.. Tell the collector you no longer have a bank account and if you send them money then mail them a money order only.... Never tell them where you work and make sure if they call your house the people know not to blab information about you when a collector will say.. Is so and so at work? could I leave a message dear? and oh by the way where is she working now? Once a collector has that asset information its all over for you because the agency can get the judgement and go after your wages...I use to write bills off at the agency if I had very little contact or none at all.. No one to call.. no assets and then I would code it hopeless.. Most debtors get into trouble because they call the agency and that puts their bill active status again and ready to go after..Now that I work at a bank I see bank levy garnishments on peoples checking accounts weekly.. A customer will call up and say where did my money go and there it would be.. All their money gone in one clean sweep... Agencies can get judgements easily and sometimes you aren't even aware of it so watch your back and do what I told you.... I would have never known any of this if I had not worked in the field and I was shocked when I leaned all of this.. I can tell you now if a collector told you he was going to freeze your accounts and threatened legal things then the collector was in violation of abusing the FDPCA law... Its a law that protects debtors like you and you have rights.. Just google it and read thru it and you will be amazed at how you can arm yourself with valuable information that could save you alot of grief.. Also most bills are not collectible after 6 or 7 years and they are out of the statue of limitations and you don't have to pay it.. However, if a collector gets you to pay even $5 on an old outdated bill then the bill renews itself as a new fresh bill and starts over from the beginning..I do know some student loans are not dismissed in a bankruptcy..
Reply:No they have no power to freeze your accounts unless they go to court and the Judge orders it.





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Reply:I just saw something on the news the other day that credit card companies can but not if you collect social security disability. They may still do it but you can have it undone it is just a huge hassle and may take a couple of weeks to succeed. I do know for sure that some student loan companies, I am not sure about that one because I've never heard of it, can garnish your wages but I can't imagine them taking the full amount at once. You should work with them to see if there's some repayment plan that may work for you. Or call a consumer credit counseling agency to help negotiate a pay back rate for you. Bad credit is never good. Good luck.
Reply:If they are threatening you and giving you misleading information based on threats you can report them to CCA to look into the matter.


A Court must be sort and court will inform you of a date to contest they are not allowed to put you into the poverty situation, seek advise from CAB who will file a complaint on your be half but you will need to make some offer or the courts would issue the said order and put in place for a 28 day period.
Reply:No they can't do this without a CCJ. And seeing as it would cause financial hardship, they probably wouldn't get one.





Offer to pay back what you can, be it £5 a month or whatever, and keep copies of all correspondence/payments, etc.