The Consumer Credit Protection Act
Consumers want to know, “does this Act have anything to do with credit?”
It actually has more to do with debt. Did you know your wages could be garnished, if determined by law, to pay back a debt. Money could also be removed from your bank account. Garnishment is the last resort for both collection agencies and the person responsible for the debt. While wage garnishment is evidence of a low credit score, this act doesn't really have to do with your credit report- even thought the word "credit" is in the title. Garnished wages can be implemented in the case an individual owes money to: a credit card company, the IRS, Child Support and lenders.
This Act has been set forth by the Wage and Hour Division of the Department of Labor and established in 1968. The Consumer Credit Protection Act is also known as the federal wage garnishment law. The CCPA protects employees from being discharged when wages are garnished from their pay. It also controls the amount of money that can be garnished from a single work week. Wage garnishment occurs when an employer is instructed to withhold earnings from an employee’s paycheck as ordered by a court of law. If a debtor is not working, their bank accounts can be frozen and money can be removed. In any case, the purpose of the CCPA is to insist that employers are not permitted to fire employees who are getting wages garnished and to limit the actual amount that can be removed weekly.
Wage garnishment or having a bank account frozen is very serious. A lower credit score is imminent if debt has become so out of hand that wages are being garnished. If you have had wages garnished or fear your debt is out of control don’t hide. Most people end up in this situation because they are so overwhelmed they don’t face the problem when it matters most.
Contact ICC to benefit from a free credit repair education. We are not a debt settlement company but we can evaluate your credit report and help you build back your credit to achieve new opportunity. If you are having wages garnished or are trying to recover from a time when your wages were garnished or your bank account frozen, you can start again. There is no quick credit fix, nothing can happen overnight, but a better score is possible and ICC can explain how.
Regardless of your past, your mistakes or your hardships, your credit report will follow you. ICC understands that life is tough! People need the right information and they deserve a chance to restore their finances, their credit and their lives. Innovative Credit Consultants can help you. Get a free credit report evaluation and free credit repair consultation today!
- Understanding Credit:
