MsDiva asked in Business & FinanceCredit · 6 months ago

My wages are being garnished for an auto loan but on my credit report it doesn’t show that anything is going towards that balance.?

Hello!!! I am trying to clean up my credit. I previously had a car back in 2015 which I voluntarily gave back due to the transmission going out. At the time I was a single mom and couldn’t afford to pay $2500 up front to get it fixed. In Dec of 2018 my wages started being garnished but the amount that I’ve paid so far does not show on my credit report or towards the balance owed (and this account is closed by the way and has been since 2015) I want to dispute this but I am not sure if I should. How should I handle this? And I don’t want to file a chp 7 or 13

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  • 6 months ago

    Listen to Michael. He explained it well. Here's mine, if it makes it any clearer to you. The money garnisheed from your paychecks won't show up on your credit report because that is not how it works. Credit reporting agencies are for "credit reporting". Your paychecks are being garnisheed because you were sued and you lost the case and you still didn't pay what you owed, so they garnisheed your pay.

    Source(s): Certified Paralegal, with 25+ years' experience.
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  • Anonymous
    6 months ago

    Its never going to update. It will fall off 7 years from the date of last activity. Closed accounts that resulted in repossession & wage garnishment do not give you good credit. You did not pay, they had to garnish your wages.

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  • 6 months ago

    There is nothing to update, the account is closed. Wage garnishment can only occur through a court order. Your lender closed your account, sued you in court, won, and got a garnishment order against you. The money that is being garnished from your checks isn't going towards the closed account, it's going towards the legal judgement against you.

    Judgements no longer show up on credit reports, so your credit report will never have any record of the "payments" being taken out of your paychecks. Basically, this is now a legal matter, not a credit matter.

    There is nothing for you to dispute or handle. All you can do is make sure you don't put yourself in a similar situation again.

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  • Anonymous
    6 months ago

    It won't show up unless you CONTEST IT. They have no obligation to do anything if the account is "closed". $2500? That's IT? Get a credit karma account...and see what is what. Its free. There are banks out there that are offering to CLEAN UP CREDIT as well.

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    • John6 months agoReport

      Credit Karma is correct. The account is closed. And you didn't pay it, so it won't reflect that you did.

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