Is it true that my tax refund can be withheld to repay an outstanding credit card debt.

Asked over 4 years ago - Greenville, AL

I have an old outstanding credit card debt and the collection agency said they are going to withhold my tax refund. Can they do that?

Attorney answers (2)

  1. John Griffin Watts

    Pro

    Contributor Level 14

    Answered . No unless the collection agency has a judgment against you.

    A collection agency cannot threaten action which it knows it can't take - withholding your tax refund is outside their ability.

    This violates the Fair Debt Collection Practices Act (FDCPA) to threaten this. This federal law allows you to be compensated and to have your attorney's fees and expenses paid. In addition we also have state laws here in Alabama that can help you.

    Don't be intimidated by abusive debt collectors - instead learn your rights and take action.

    Best wishes,

    John Watts

  2. Brett D Weiss

    Pro

    Contributor Level 18

    Answered . Unless it's for a student loan or domestic support obligation, no. If the collector obtains a judgment against you and the refund is deposited into a bank account, the collector may be able to garnish the bank account.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

32,479 answers this week

3,365 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

32,479 answers this week

3,365 attorneys answering