Springleaf Financial Serives of Arizona Vance Anderson Taken to Court even after making payments Phoenix, Arizona

Now, I just received a letter stating that they were garnishing my wages... While I'm making payments! Can they legally do that?
- You have a couple of things going on.  As to this question yes, if they have a judgment and your state allows it they are allowed to garnish your wages.  Even if you are making other payments.

However, your issue is the original suit that allowed them to do this.  Each jurisdiction has specific rules to "serve" someone a summons.  If they don't follow these regulations you can file a motion with the court to have the judgment vacated/set aside.  This would stop the garnishment, and in some cases they would be require to return the money they have garnished. 

The first thing you need to do find out where the suit was filed(should be on the paperwork you received).  Then go to the Clerk of the Court at the Courthouse it was filed at.  You will need to get a copy of the original suit, you are most interested in the "Proof of Service".   Some companies do what is know as "Sewer Service", that is serving you at a place that they know you will not get the summons.   This is so that you won't show up and they can get a default judgement.

Since you were making payments I imagine you were keeping in contact with them, and if they did this at any other address than your current one you probably have good grounds for this.  So if they obviously lied on the Proof of service  that would be good grounds to file to have it vacated, and you may want to at least consult a lawyer or see if there is some legal aid group that may help you.

Now if you find that the Service was legal, you are pretty much out of luck and unless you can come to a new agreement(in writing) they may garnish your wages.