What can I do if the interest on my garnishment is more than the amount they are garnishing me?

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What can I do if the interest on my garnishment is more than the amount they are garnishing me?

I am being garnished for a car that was repossessed. The balance after auction was around $4,000. After several years of being garnished the balance is now $16,000 meaning the interest they are charging is higher than my garnishment. What can I do?

Asked on June 11, 2012 under Bankruptcy Law, Oklahoma

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

When a motor vehicle is repossessed and the dealer gets less for the car at auction or resale than what you still owed on it, the banker can go after you in a state that allows for deficiency judgments for the amount of the deficiency. Here, you owed $4,000.00 but what they did was either charge a usury interest or simply put, fraudulently charge you for the price of the car again. Contact the entity who handles criminal investigations of these types of entities (try your state attorney general) and also consider disputing the charges on your credit report so that the entity has to prove this debt and either be required to stop the wage garnishment and/or also pay you back.


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