Can credit card companies garnish your wages? The simplest answer is “yes,” but it might not be that easy depending on the circumstances.
It’s a scary question to ask.
For most people, whether or not credit card companies can garnish wages depends on:
- The type of debt
- How much is owed
- Whether or not you can prove that you don’t have the ability to pay off the loan
The most important thing to understand is the rights and protections you have under consumer law. The Fair Debt Collection Practices Act (FDCPA) sets some boundaries for how creditors can pursue debt collection.
For example, a creditor can’t call you repeatedly or threaten to sue you if they don’t intend to follow through on their threat. If you think that the creditor is violating your rights, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). This can put a stop to the harassing behavior.
You can also ask your creditor for help if you can’t pay off the loan right now. Many creditors are willing to work with you to create a payment plan that works for both parties. If you can’t come to an agreement with the creditor, you can defend yourself in court.
This can be expensive and time-consuming, but if the alternative is wage garnishment, it’s worth the effort. If you can prove the debt is not yours or you have no legal obligation to pay it, the court can rule in your favor.
But what if the debt is legitimate and you can’t pay it off?
Can credit card companies garnish your wages?
Yes, they can. If you can’t pay off the debt and the creditor decides to take legal action against you, it’s likely that the court will order your employer to garnish your wages.
This can be a scary prospect, but there are some things you can do to protect yourself.
