What happens if a debt collector garnishes more than you owe?
An excessive garnishment can cost you, but there may be ways to recover money that shouldn't have been taken.
When a debt collector garnishes more money than the debtor actually owes, the extra funds are usually not retained by the collector. However, recovering the overpayment can be a complex process. The outcome depends on factors such as whether the excess amount has been transferred to the creditor, the stage of the garnishment process, and the debtor's state-specific procedures.
To address the discrepancy, the debtor should first calculate the exact overpayment by comparing the total amount garnished with the remaining balance on the judgment before the disputed garnishment. This calculation should consider any interest, court costs, or other legally included amounts in the judgment, rather than just comparing the garnishment with the debt's original balance.
Upon identifying the overpayment, the debtor should request a complete accounting from the debt collector or creditor, which should detail the judgment balance, garnishment payments received, and how those payments were applied. The debtor should then compare this information with their bank records or pay stubs to determine if an overpayment has occurred.
If the records confirm an overpayment, the debtor should contact the creditor or debt collector to request the return of the excess funds. In some cases, the debtor may also need to notify their employer or the court handling the garnishment, depending on where the error occurred and their state's specific procedures. The debtor should maintain copies of all correspondence and records related to the issue.
If the debt collector fails to return the excess funds or disputes the calculation, the debtor may need to seek court intervention. The process for doing so varies by state and may involve filing an objection, motion, or another request asking the court to determine the correct balance and order the return of any improperly collected funds.
The debtor should not wait to address the problem, even if the overpayment appears obvious, as garnishment procedures and deadlines differ by state. Resolving the discrepancy sooner can prevent additional money from being withheld while the debtor works to recover what was taken.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
