Why is my paycheck being garnished for a repossessed truck after 7 years?

Question

In 2018, I co-signed for a truck, which was repossessed later that year or early 2019. I was unaware of the repossession, having lost contact with the primary borrower. Seven years later, my paycheck started getting garnished without any prior notice. My credit report shows the account twice: once with Consumer Portfolio for $12,390 and once with Jefferson for $13,400. I haven't received any court judgment notices or past communications regarding this debt. What could be the reason for this garnishment and the duplicate entries now, after seven years?

Barry W. Kaufman · Answer

Don't rely on your credit report, but apparently your lender either obtained a judgment against you and then sold the account to Consumer Portfolio; or sold the account to Consumer and it obtained a judgment; but either way it appears Consumer has sold it to Jefferson Capital. 
I recommend that you look up the case on your county clerk's website and determine by reading the docket, the timeline of things. That will at least give you a blueprint of what's happened. If you can access the actual documents on the docket, even better. You will want to find the complaint and the affidavit of the return of service.

James L. Arrasmith · Answer

It sounds like your paycheck is being garnished due to a debt that was not resolved after the truck's repossession. When you co-signed for the truck, you agreed to be responsible for the debt if the primary borrower failed to pay. After the repossession, the lender could have pursued legal action against both you and the primary borrower to recover the outstanding balance. It's possible that a court judgment was issued without you receiving notice, especially if the lender used an outdated address for you or failed to notify you properly. 
 
The duplicate entries on your credit report could be due to the debt being reported by two different collection agencies or creditors. The original creditor may have sold or transferred the debt to another collection agency, leading to multiple listings on your report. This can happen if the account has been passed around over the years as the debt remained unpaid. 
 
You should contact both Consumer Portfolio and Jefferson to inquire about the debt and the garnishment. Request any documentation, including a copy of the court judgment if one was issued. If you never received prior notice of the judgment, you may be able to challenge the garnishment and ask for a review of the case. Additionally, you may want to consult with an attorney to understand your rights and explore potential options for resolving the garnishment or having the debt reassessed.

Q: Why is my paycheck being garnished for a repossessed truck after 7 years?