My whole bank account was seized today by Midland Funding-is this legal?

i did some research because i owe them also but currently paying but wasn't before for a while. I didn't even know they could do that..lol that sucks

The first question you may have is So who is MIDLAND FUNDING LLC? ... Encore is a Delaware holding company whose assets consist of investments in its subsidiaries. Encore Capital Group, Inc. is a systems-driven purchaser and manager of charged-off consumer receivable portfolios and the parent company of the following subsidiaries:

Midland Credit Management, Inc. Kansas
MRC Receivables Corporation Delaware
Midland Funding NCC-2 Corporation Delaware
Midland Portfolio Services, Inc. Delaware
Midland Funding LLC Delaware
Ascension Capital Group, Inc. Delaware
Midland India LLC Minnesota
Midland Calibrated India Private Limited Delhi, India

The next question your wondering about is Can a Collection Agency Garnish My Bank Account?

A bank account garnishment allows a creditor to seize funds from your checking and savings accounts without your consent. Collection agencies sometimes resort to garnishing bank accounts when a debtor refuses to pay a delinquent debt. Although a collection agency can garnish your bank accounts in certain circumstances, it must follow the proper legal procedure in order to do so.

How it Works



Your bank will not allow a collection agency to garnish your bank account unless the company presents it with a writ of garnishment, which is a court document noting that the collection agency has the court's permission to seize funds. A collection agency cannot obtain a writ of garnishment without first winning a lawsuit against you.

Once the bank receives the writ of garnishment, it freezes your accounts for up to 30 days, depending on your state's laws, before turning the contents of your accounts over to the collection agency. A collection agency must know where you bank in order to serve your financial institution with the writ of garnishment.


Garnishment Exemptions



A collection agency can seize wages you deposit into your bank accounts, monetary gifts and your previously deposited tax refunds. It cannot garnish federal benefits such as Social Security payments, military annuities, student loans or survivor benefits. Collection agencies also cannot garnish unemployment payments, retirement pensions and public assistance payments. You must immediately notify your bank of any exempt funds within your bank account to protect them from garnishment.


Joint Bank Accounts



A collection agency can seize all non-exempt funds within your private bank accounts. If you hold a joint bank account with another individual, however, the collection agency must adhere to your state's laws regarding joint bank account garnishment. Although the company can still garnish funds from a joint bank account, certain states limit collection agencies to seizing half of the funds present within the account. If the money in the joint account does not belong to you, filing an exemption claim noting that the funds belong to the other account holder may protect the account from seizure. Whether you have this option also depends upon your state's specific laws regarding joint accounts and garnishment.


Fighting Garnishment



A collection agency can periodically garnish your bank accounts until it recovers the full amount you owe. You can revoke the company's right to seize your accounts by appealing the court judgment that grants the collection agency its garnishment rights. Although grounds for appeal vary, if the company failed to serve you with proper notice of the lawsuit that provided it with its right to garnish or you do not owe the debt in question, you can file a motion with the court to have the collection agency's judgment vacated. Should you succeed, the collection agency will lose its right to garnish your bank accounts.


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RE:
My whole bank account was seized today by Midland Funding-is this legal?
I went to pay at the grocery store and my debit card was declined. I went online to check my back account and all of my funds had been placed on hold and I had a $0 balance! My whole income tax refund was in the account! The bank said that it was a company called Midland Funding that placed a...

Never Open a Checking or Saving Accounts When You Owe Money To a Collection Agency.

the only way to seize funds is legally....