Ace Cash Express Harassment, Wage Garnishing & Violating privacy is this Legal? Baytown, Texas
A month before my wedding I took out a $400 payday loan from Ace and payed the first 3 payments (but since it was so close to the wedding the payments were mostly finance charges and since they are so high I was unable to put very much towards the principal of the loan). I knew it was a mistake when I did it, but I felt like I had no other choice. I ran into some hard times, I wrecked my car and my gap insurance was voided for some reason or another so I had to pay off my car (well the amount that the insurance didnt pay), My water pipe and gas line at my house busted, I ended up in the hospital so I could not pay everything like they wanted me to. I told Ace I would pay half of what I owe and then the next payday I would pay the other half, and the lady I spoke to said that would be fine, well I got an email saying they were going to deduct the full amount, I called Ace and asked what was going on (this was 2 days before my payday and 3 days after I had contacted them). They said there was no record of me calling and that I should have called earlier in the week because there was nothing they could do, I asked to speak to a manager and the lady I was speaking to refused to put one on the phone, so I called my bank, closed my bank account, reopened another one and put a block on ACE cash express. When they couldnt get their money (which I had every intention on going to a local store and paying the half I had agreed to pay and then pay off the other half on my own schedule) a guy called my office monday morning VERY rude DEMANDING that I "pay him what I owe him" I explained that he was going to get me fired, please do not call my place of business. I tried to tell him what I planned on doing and he was insisting I pay him every bit of it today and I told him AGAIN that I couldnt handle personal matters at work and his exact words were "You can go to the bathroom and call me from your cell phone". My company has a strict no cell phone policy and my cell phone stays in my car. When I explained this to him he said "what you dont get a bathroom break? thats a lie, the slave days are over"! I was so upset, I told him I was done talking to him and I would handle this on my own time DO NOT call my job again and he said "Ma'am do NOT tell me what to do or who to call". I hung up. I really didnt have the money to pay half of it that day and I was so upset from the phone call I didnt. I figured I would put back and pay it all up. I have since received threatening and harrassing phone calls from the staff at ACE to my job. My boss has even told them that I cannot receive personal calls at work, I have even been repremanded for this.
I received a phone call this morning from a "Mr. Phillips" (we have a new employee answering phones so instead of screening the call he just patched it back to my office), when I answered he said that he was going to make a decision on my case at 12 pm today and if he didnt get a payment he was going to contact my HR dept to garnish my wages. I explained to him that I am very busy and I did not have time to discuss this with him, I would call him at 12 on my lunch break and he said that wasnt good enough because thats when he was turning in his decision on my case. I said I would try to call him back in one hour to resolve this. I do not want to call him back, I believe it is a scare tactic and I am the HR dept for our division so he will have to talk to me about wage garnishment and last time I checked that consumer debt is not a legal wage garnishment in the state of texas. What can I do?
6 Updates & Rebuttals
Jacob
USAI Stand Corrected
#7Consumer Comment
Fri, February 18, 2011
All right, I didn't realize it was the original creditor, so I guess I made a mistake on this one.
But I'm not the one trying to avoid a debt. I was just trying to help.
Striderq
Columbia,South Carolina,
U.S.A.
Information...
#7General Comment
Thu, February 17, 2011
Since Ace is the original debtor the Collector's act does not apply. However you do have the right to have them not call you at work. This request is best in writing send via return receipt so that you have proof that they received it.
Yes, they can garnishee your wages, HOWEVER they have to get a court order to do so. I would suggest to get this paid, make sure you get a receipt showing paid in full, as soon as possible. The reason they're playing hardball is the closure of the account. I understand you were trying to protect yourself from them taking the whole amount but look at it from their side. You took the loan and when they tried to process payment the account was closed. Of course this raised some red flags. The best thing to do would be to pay them as soon as possible and then not use them or any other similar service again. It's a vicious circle that's hard to get out of once entered.
Best of luck to you.
Flynrider
Phoenix,Arizona,
USA
Not quite.
#7Consumer Comment
Thu, February 17, 2011
The FDCPA applies to 3rd party collection agencies, not to the original creditor. So, forget about using that to get the lender off your back The garnishment threat is mostly empty. In order to obtain a garnishment, the lender would first have to obtain a judgement in court. Additionally, under Texas law, wage garnishment would not be possible for this type of debt. That does not mean a lender can't collect. If they are successful in obtaining a judgement, they could garnish your bank accounts.
Basically, you scraped the bottom of the barrel (i.e. payday loans) to get some quick cash. The business model for these places are high risk, high interest loans to folks who are likely to default. Hence the aggresive collection tactics. I'm not sure how this could be classified as a ripoff, since you have clearly defaulted on your contract to repay.
" What can I do? "You could pay the money back. You could declare bankruptcy. You could just let the lender go through with their standard collection efforts (i.e. judgement & garnishment attempts). There's no easy way to just make this go away.
Robert
Irvine,California,
U.S.A.
Incorrect...
#7Consumer Comment
Thu, February 17, 2011
Jacob....
You have rights to request that they not contact anyone other than you, and that they only contact in writing (not phone). It does sound to me like they are violating the Fair Debt Collection Practices Act.
- The FDCPA covers ONLY 3rd Party Collection Agencies, Ace is considered the Original Creditor so they do not have to abide by it. If you go after them spouting off FDCPA regulations all they are going to do is laugh, knowing that they can do what ever they want because you don't know what you are talking about.
Now back to the OP...
I checked that consumer debt is not a legal wage garnishment in the state of texas.
- You are correct, your wages can not be garnished in Texas for a consumer debt. However, they can still attach your bank accounts. But to do that they must file suit and get a judgement against you first.
Now, when you applied for their loan you gave them your checking account number. If they do sue you they will use that to get the attachment of your account. So immediatly close that account and not only open a new account, but a new account at a totally DIFFERENT bank. If you have any other accounts at the original bank close those as well. Not that they still won't find your new account, but it just becomes harder for them.
If you really do want to make good on this then make sure you get what ever agreement you have in WRITTING and follow through with it.
locoone
United States of Americare
#7General Comment
Thu, February 17, 2011
I don't agree with you, the most central point in our being are not treasure but our health and love like nitric oxide for bodybuilders
Jacob
USANot Legal. But...
#7Consumer Comment
Thu, February 17, 2011
You have rights to request that they not contact anyone other than you, and that they only contact in writing (not phone). It does sound to me like they are violating the Fair Debt Collection Practices Act.
http://www.privacyrights.org/fs/fs27-debtcoll.htm
However, I'm really not thrilled with your conduct either. If your car insurance just lapsed "for some reason" then you are obviously careless about preparing for and upholding your own responsibilities. I'm sorry that you went to the hospital, and I do hope you are able to penalize this company for FDCPA violations, but nonetheless I also hope you pay the money you agreed to, on the timetable you agreed to.