Is this considered a federal debt like AAFES (Military Star card) told me?
Is there's a statute of limitations on garnishment of federal debts. It is my understanding there's a 10 year statute of limitations on collections for federal debts.
If it is not considered a federal debt, then how are they able to garnish it?
Last week my tax return was offset. I contacted Transworld who is a collections company who garnished the return. They represent AAFES who I had a military Star card with about 15 years ago. When I cleared out of the army, and AAFES, they didn't inform me of any debts. I thought it was paid off but apparently I owed about $3,000. Since then it has accrued $7,000 in interest. It's never showed on my credit and I've never received a notice about it. I've even received returns in the past but this year it was offset and went to trans world. Transworld and AAFES claim that it can be offset because since it is AAFES it is considered a federal debt. It is my understanding that a federal debt has a statute of limitations of 10 years. So first, I'm confused how they can offset this after 10 years. AFFES told me they did not actually sell the debt to the third party. Transworld is just collecting for them. But the debt is still with AAFES and is over 10 years old. Maybe the 10-year statute of limitations started whenever Transworld took over collections for the debt in 2014. I am not sure. Any advice would be greatly appreciated.
I have no problem paying back the money I owed which I already have and then some. My tax return was 3800. I originally owed about 3,000. This is from a Military Star card that I originally got in 2003 and didn't use after 2005. I made payments on the car during my last appointment in 2010 and thought it was paid off. Regardless, the first notification I have received about this debt was this offset in 2021.
If there's nothing I can do about this it seems as though I will be giving up my next 5 to 10 years in tax returns to this company. Even though they took this tax return it will accrue another$1,500 per year in interest. So I feel like it will be never ending.
Well, hopefully someone's got some good answers. Thanks.
