Bank Levy - BIG mess

[Skywalker877]

What is the name of your state? NJ

A law firm debt collection agency put a levy on my account. The amount owed to them was $461.69. They put a levy on me for my entire account which was close to $1700. I called the law firm and they told me that the levy should have only been for the amount owed. I called me bank and there was nothing they could do. I went to the law firm on Monday and paid them in cash and got a receipt in the amount of $461.69.

They tried calling the sheriff who ordered my bank to put the levy on my account but the sheriff couldn’t do it until today (Tuesday morning). For the past few days there has been a “Pending Transaction” in my account of the entire amount that was in my account. I teach piano and had a rent check bounce to the store I rent my room from. The check was for $452. If they had correctly placed the levy in the amount of $461.69, my check would not have bounced and everything would have been fine.

Today I look in my account and they have completely withdrawn the money out of my account and gave me a $125 fee. The total amount they have basically stolen from me now is $1689.94 AND I gave them $461.69 in cash yesterday to pay the bill.

They are claiming that it is going to come out within 24-48 hours. Now my problem is this: I have a rent check that I am very fearful of bouncing.

Two questions:

1 – If they place a levy on my account to freeze the money, why would they withdraw it?

2 – Can I get them to reimburse me for the $35 bounced check fee from my bank? I DO have a letter from them saying “Your balance at the time of the bank levy was $461.69 which is the amount that should have been levied from your bank account”. If they had done it correctly, the check would have cleared.

3 – Can I pursue any legal actions against them?

Thank you

 

[moburkes]

You made a huge mistake by giving them the cash. Debt Collector will be by, but there is at least 1 state that allows the levy to be 2 or 3 times the amount of the actual debt. I don't know the details, but, while are you are waiting, you can search the forums on this topic. It is asked frequently.

 

[Skywalker877]

You made a huge mistake by giving them the cash. Debt Collector will be by, but there is at least 1 state that allows the levy to be 2 or 3 times the amount of the actual debt. I don't know the details, but, while are you are waiting, you can search the forums on this topic. It is asked frequently.

I did get a receipt from them for the cash payment and a letter stating the balance is $0.

 

[moburkes]

I did get a receipt from them for the cash payment and a letter stating the balance is $0.

That doesn't matter right now, though. You made a payment even though there was a levy on your account. Had you not done that, you would have some cash in your pocket.

 

[TigerD]

What is the name of your state? NJ

A law firm debt collection agency put a levy on my account. The amount owed to them was $461.69. They put a levy on me for my entire account which was close to $1700. I called the law firm and they told me that the levy should have only been for the amount owed. I called me bank and there was nothing they could do. I went to the law firm on Monday and paid them in cash and got a receipt in the amount of $461.69.

They tried calling the sheriff who ordered my bank to put the levy on my account but the sheriff couldn’t do it until today (Tuesday morning). For the past few days there has been a “Pending Transaction” in my account of the entire amount that was in my account. I teach piano and had a rent check bounce to the store I rent my room from. The check was for $452. If they had correctly placed the levy in the amount of $461.69, my check would not have bounced and everything would have been fine.

Today I look in my account and they have completely withdrawn the money out of my account and gave me a $125 fee. The total amount they have basically stolen from me now is $1689.94 AND I gave them $461.69 in cash yesterday to pay the bill.

They are claiming that it is going to come out within 24-48 hours. Now my problem is this: I have a rent check that I am very fearful of bouncing.

Two questions:

1 – If they place a levy on my account to freeze the money, why would they withdraw it?

2 – Can I get them to reimburse me for the $35 bounced check fee from my bank? I DO have a letter from them saying “Your balance at the time of the bank levy was $461.69 which is the amount that should have been levied from your bank account”. If they had done it correctly, the check would have cleared.

3 – Can I pursue any legal actions against them?

Thank you

Poster JETX has more experience with levies than I do. Here is my understanding and if I am wrong, JETX will surely correct me.
Your questions:
1. They don't place a levy on your account to freeze money -- they place a levy on your account to seize money.
2. No you will not get reimbursed for bounced check fees. Also the amount levied is incorrect. NJ law requires the sheriff to add 10 percent to the amount of the levy for his fees. Even if you paid the debt direct to the judgment holder after the levy was initiated, you still owe the sheriff his 10 percent.
3. Anyone can always sue anybody. Success at the suit is another matter.

The sheriff can't return the money until he has possession of it. The bank will assess fees for anything and those fees are your responsibility. What I don't understand is: If you had four times the amount of the judgment in your account -- why didn't you just pay it before they had to garnish your accounts?

My thoughts: It feels as there is information missing.

 

[Skywalker877]

Poster JETX has more experience with levies than I do. Here is my understanding and if I am wrong, JETX will surely correct me.
Your questions:
1. They don't place a levy on your account to freeze money -- they place a levy on your account to seize money.
2. No you will not get reimbursed for bounced check fees. Also the amount levied is incorrect. NJ law requires the sheriff to add 10 percent to the amount of the levy for his fees. Even if you paid the debt direct to the judgment holder after the levy was initiated, you still owe the sheriff his 10 percent.
3. Anyone can always sue anybody. Success at the suit is another matter.

The sheriff can't return the money until he has possession of it. The bank will assess fees for anything and those fees are your responsibility. What I don't understand is: If you had four times the amount of the judgment in your account -- why didn't you just pay it before they had to garnish your accounts?

My thoughts: It feels as there is information missing.

Thanks for the reply.
to answer your questions...

1 - They told me at my bank that it was to freeze the money, not seize, but I suppose that isn't the case.

2 - The amount was $461.69 - I have a letter from the law firm stating it should have been that amount. That is why I was asking if I could get my bounced check charge because they messed up on the levy. They levied my entire checking account when they are admitting to me it should have been only $461.69. Even if that was levied, I would have had about $1200 left over.

I was at a job that was closing and this past year got paid very inconsistently. It was just stupidity on my part and I am aware of that.

THere is nothing missing. I did speak with them again and they did say that the money would be back in my account, but now Commerce is charing me a $125 fee for the whole porcess, which they said is a standard with levys.

Thanks