Can entities other than the government intercept your refund?

I know state and federal government agencies can intercept refunds for their own agency (taxation) or other government agencies, such as federal taxes intercepted for state child support, etc. But can refunds be intercepted by say a mortgage co. or other creditor? My friend lost her house last year and coincidentally so did her own cousin. Her cousin's federal refund was intercepted last week, according to him, by this mortgage co. or an agency operating on their behalf. My friend is now scared this will also happen to her. I did not know other agencies than the government could do this and think she would have at least been notified by mail of the possibility. She obviously has moved, since she lost her house, and is concerned that if they did attempt to notify her it was not forwarded. Any insight about this?

Your friends cousin is blowing hot air. I won't say that his refund wasn't captured, but I will say that it wasn't for his mortgage company.

Tax refunds are not captured for private and commercial debts. Only for government debts, back child support, and student loans in default.

What may have happened is that if he had a deficiency judgment against him that included a seizure order on his bank account, the tax refund would be fair game once it was deposited in to his account. But that is not the same as direct capture of a tax refund by FMS.

Happens a lot. TFTP Report It

Yes. If a creditor has a legal judgement against someone for a debt that has gone unpaid, they can certainly seize the tax refund to satisfy the judgement (unpaid debt) or a portion of it.

I will strike a guess, your friends cousin owes your friend money and promised it to her out of her tax refund? Ask your friend. Bostonian is right.

Now, for your friend, if she has been informed by a creditor that they may lien (take) money in her bank account, then her refund could get taken that way.

Odds are low though.