The tru answer is yes and no. It depends on the type. If the pre-paid (Not to be confused with secured) card is attached to a bank account it can be garnished after a judgement is received through a court (Just like a bank account). The key is to get a pre-paid card that you can load from things like the greendot moneypak, at a western union, money mart or the like. Then do not use the card to pay an account like the creditor you are worried about garnishing you. Pasy them only with money orders. Otherwise they will get you credit card number, request a garnishment through the court, and levy the card at times likely to have money on them (Fridays - as most people get paid then. Or the 1st, 15th, 30th of the month. Other common pay dates) The key is if they don't know about the account they can't garnisgh it. Does that make sense?
Subject: prepaid debit cards
Thu Feb 23, 2012 12:43 am
my prepaid card is linked to a bank and am having my tax refund direct deposited to it. In this case is it possible for it to be garnished? And does your creditor have to inform you that they will be garnishing you?
Wed Oct 17, 2012 9:28 pm
read closely, i am worried about garnishments too, and chase prepaid card states they charge 125 per garnishment. so far i am assuming the only prepaid card that will not get gernished is one from walgreens that charges you to refill and has no transfer or direct deposit options
Subject: yes, it is "possible"
Sun Feb 03, 2013 1:21 am
In reality, it is "possible" to garnish prepaid debit cards, but it is highly unlikely.
The greatest misconception is that pre-paid debit cards are like gift cards...not true. However, it is apparent on this thread that no one has read the fine print. Pre-paid debit cards actually have FDIC accounts behind them. If a creditor could find you had one (which they really can't) they could garnish.
Sun Aug 11, 2013 8:40 pm
When activating a green dot card, you DO have to enter your SSN. So if a creditor can search by SSN, which they probably can, they can definitely FIND your account.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.