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Episode Summary

Amy — a retired Texas teacher living on a fixed income — whose protected retirement funds were swept from her bank account to satisfy an old, likely time-barred credit-card judgment. By filing a detailed complaint with the CFPB and notifying both the collector and the bank that the funds were protected under Texas law, Amy triggered a reversal and got her money back. The episode explores why precision in language matters, what ‘protected funds’ and ‘time-barred debt’ mean, how responses differ between banks and collectors, and the broader, compounding costs of consumer-financial abuse on older Americans.

Key Topics

• Protected funds and Texas anti-garnishment protections
• Time-barred debt and judgment enforcement
• How to file an effective CFPB complaint (what to say, who to notify)
• Bank vs. debt-collector obligations and typical responses
• The hidden tax of junk fees, high-risk interest, and remediation costs on fixed-income seniors

Practical Takeaways

• Name the money source explicitly (e.g., Texas teachers’ retirement) and state it is protected under state law.
• File a CFPB complaint and share it with both the collector and the bank, in writing.
• Keep records: dates, amounts, messages, and call notes help accelerate resolution.
• Older Americans on fixed incomes are disproportionately harmed by junk fees and predatory products.
• Policy matters: clear rules and enforcement protect households long before a crisis does.

Resources Mentioned

• Consumer Financial Protection Bureau — Complaint Portal (file and track complaints)
• Your state’s exemptions chart (review protections for wages, retirement, and benefits)
• Legal aid organizations for debt-collection and garnishment issues
• Bank account ‘benefits-only’ direct-deposit settings and alerts

More from Jim:
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