Can
Credit Card Companies Garnish Your Wages?
Can credit card companies garnish your wages? Technically, yes.
“Garnishment” is the term for withholding a part of your wage in order for you to settle your credit card debt.
Wage garnishment is a powerful back-up plan that credit card companies use to collect credit card debt that is
legal and authorized by court.
When can credit card companies garnish your wages? Here’s the typical scenario. You receive your bill and, for some
reason, are not able to pay for your debt. You don’t act early and refuse to go for a debt management plan with
your creditor. This goes on for a few months, say around 60 days from your missed payment date.
How can credit card companies garnish your wages? If you continue ignoring letters, the creditor can sue you for
refusing to settle your debt. If you don’t lawyer up within twenty to thirty-five days, the company can have a
default judgment drawn in their favor. If you do yet the court receives evidence of your irresponsibility as a
credit card holder, they can still rule in favor of the creditor. Wage garnishment can happen in as fast as 60 days
from the time of missed payment. A court order is usually given to your employer or your bank stating that they
need to withhold a portion of your wage or property until the court decides how much you owe your creditor. Laws
governing wage garnishment vary from state to state and there are actually four states that do not allow this:
Texas, North Carolina, South Carolina, and Pennsylvania.
Can credit card companies garnish your wages on their terms? Here’s the good news, if the court’s decision is in
their favor, you still have the opportunity to fight back. You are given the chance to assert exemptions on
properties that can be garnished and challenge the exact amount they’ll be taking from you.
However, the effect of wage garnishment will not only stay on your employee and bank record; it will be on your
credit report for seven years. This will lessen your chances for loans and credit card applications in the future.
Avoiding wage garnishment is something you can do. You just need to contact your creditor as early as possible if
you will miss a credit card payment and have both of you come up with a debt management plan that will work. So,
the direct answer to the question, “Can credit card companies garnish your wages?” is absolutely yes, but
not without a court order.
Source: Credit Cards For People With Bad Credit Rating
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