State Bill Would Stop Debt Collectors From Emptying Bank Accounts

SB 298, by Sen. Bob Wieckowski (D-Fremont), would automatically exempt up to $2,250 per debtor from bank levies — that’s when a judge gives a creditor approval to seize money from an account.  More than 100,000 bank levies are served every year statewide, according to research by the East Bay Community Law Center.

7 On Your Side: People’s paychecks garnished for debts they don’t owe

Countless Consumers Are Paying Off Someone Else’s Debt Because Of Default Judgments

Some defendants will even pay a wrongfully assigned debt off because the amount of the debt is less than the money it would cost to fight the matter in court. Sharon Djemal, director of the Consumer Justice Clinic at the East Bay Community Law Center – which is assisting Christy in her case – tells Consumerist that the Center sees at least one person each week dealing with these same unfair debt collection scenarios.