Can prepaid debt cards be garnished?

Submitted by Theo on Thu, 01/11/2007 - 18:01
Forums

Can prepaid debt cards be garnished?

Yes Theo, prepaid debt cards or secured cards can be garnished.

Mary

Thu, 01/11/2007 - 18:37 Permalink
T (not verified)

Good luck garnishing them - first you got to know about them - then you got to find a local registered agent in the state that you are garnishing because the debtor can get their money back because you are required to serve the registered agent or person in charge of the business. So if you are going to garnish AllAccess in the State of Oregon - good luck - they do not have a local registered agent!

Fri, 12/19/2008 - 06:11 Permalink

SD I believe he was just giving an examp;le of a prepaid card. I did not relize that prepaid cards could be garnished. I would imagine though they would be fairly hard to trace. I do agree with the fact that the debtor should be notified of garnishment. That would only seem fair.

Fri, 12/19/2008 - 15:29 Permalink

There is no question of wage or bank account garnishment for prepaid credit cards because you pay the money first with the credit card company and then use the card. In other words, you use your own money. These cards generally have no interest charges and comes with a accidental insurance. These cards can be refilled anytime once you have used it in full and can be used anywhere. Prepaid cards can either be a MasterCard or a VISA card.

Sat, 12/20/2008 - 04:37 Permalink

I had a Wired Plastic card...a pre-paid card, at one time. I had my wallet stolen at work and my Wired Plastic and debit card ( for my bank account) was missing. Someone had actually used the wired Plastic card. I wrote a letter to the company, as well as talked to them, on the phone...stating i was at work when the transaction was being made from my Wired Plastic. I even faxed them a letter, with my Employer's signature, telling them the same. They refused to refund my money. After all of this, of course, I 'closed' the account with them. I had about $200.00 on the card. I was really upset about everything.

Sat, 12/20/2008 - 14:10 Permalink

Are there any gaurentees of refunding money that was stolen from these cards? Normal credit cards have fraud protection and will protect you. I am wondering if a prepaid is like this since you are in fact using your own money to have the card. I have never had a prepaid visa or any other prepaid credit card and am curious how these work since I was considering one for interenet purchases.

Sat, 12/20/2008 - 14:59 Permalink

To tell you the truth, I'm not sure, now, if the card had a 'refund guarentee' on it, if the Cc was lost, stolen, etc. I just can't remember. After all the CRAP that happened, with my CC, the CC company called me up and asked for a 'survey' on how I "enjoyed" the CC. OMG!! Boy...did I give them a SURVEY!!LOL

Sun, 12/21/2008 - 02:37 Permalink
s williams (not verified)

I am a server, and in a few weeks our company is going to switch to pay cards, I will still receive the money every am after a certain time, but it is not a pay check where they take the taxes out prior, as servers we receive our money every shift at the end of the shift and the only difference is that now we will receive it in the am as it will be loaded onto a card which is done by our mgr putting in the amt into the computer after each shift. I am only wondering if this type of card can be garnished?It is seperate from my checking acct, and my only other income is my social security which goes into my checking acct. I am having trouble with a credit card co, and am curious about this new way to be paid. It was impossible for the credit card co to garnish anyone before this because we receive no paycheck, and still will not get a check. in this ecomomy it is worrisome

Sat, 08/07/2010 - 02:42 Permalink

Hi swilliams,

As far as I understand from your query,

the only difference is that now we will receive it in the am as it will be loaded onto a card

That means you will have to have an account. If the credit card company you are having problems with knows nothing about this account, then they won't be able to garnish, else they definitely can.

Hope this helps.

Thanks,

Aaron

Mon, 08/09/2010 - 09:09 Permalink

Hi ebby,

No, a prepaid credit card cannot be garnished because in prepaid cards you are required to pay the money before you can even use the card.

Thanks,

Aaron

Sat, 08/14/2010 - 09:08 Permalink
Pat Bennett (not verified)

I read Aaron's response on the Pre-paid cards. With all due respect, are you an attorney to be able to say for sure whether or not money on a re-paid card can or can't be garnished? I am concerned because I have a pre-paid card and have a judgement against me by EDD that was signed last month (I do have a copy). I'm in the process of filing bankruptcy, but in the meantime, how do I protect what little money I have?

Wed, 10/27/2010 - 21:11 Permalink
YSS (not verified)

The answer is YES. If its connected to a bank then the bank has assigned an account # to that card...so any inquiries that come through to the bank asking if you have an account there would be listed as a YES. I just looked at my prepaid (spending card) FAQs and the answer was YES! hope this helps. But, you are right they would have to know what bank to do this.

Sat, 04/23/2011 - 20:50 Permalink

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?

Sat, 04/30/2011 - 19:40 Permalink
tootsietrouble (not verified)

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?

Thu, 02/23/2012 - 00:43 Permalink
heath (not verified)

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

Wed, 10/17/2012 - 21:28 Permalink
berklaw (not verified)

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, 02/03/2013 - 01:21 Permalink
Anonymous (not verified)

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.

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