Making Justice Real
The Official Blog of the Legal Aid Society of the District of ColumbiaInvestigative Reporting Highlights Pervasive Garnishment and Attachment in Debt Collection
NPR and ProPublica collaborated to produce two related pieces that ran this week on the recent increase in creditors and debt collectors’ use of wage garnishment and bank account attachment when consumers fall behind on paying their debts. The debts are often unexpected medical expenses or credit card bills that piled up after a major life event reduces consumers’ ability to pay. Now, creditors are obtaining judgments that they can use to garnish as much as a quarter of consumers’ income and to seize funds from consumers’ bank accounts. ADP, the largest payroll services processor in the country, estimates that almost 5% of American consumers earning between $25,000 and $40,000 per year face wage garnishment as a result of consumer debt.
From NPR:
Millions Of Americans’ Wages Seized Over Credit Card And Medical
With Debt Collection, Your Bank Account Could Be At Risk
From ProPublica:
Unseen Toll, Wages Of Millions Seized To Pay Past Debts
Old Debts, Fresh Pain: Weak Laws Offer Debtors Little Protection