The State of California is considering a bill that would add additional limits to the amount a creditor can garnish.
Currently, “Existing law prohibits the amount of an individual judgment debtor’s weekly disposable earnings subject to levy under an earnings withholding order from exceeding the lesser of 25% of the individual’s weekly disposable earnings or the amount by which the individual’s disposable earnings for the week exceed 40 times the state minimum hourly wage in effect at the time the earnings are payable, as specified, unless an exception applies.”
From the SB 501:
“This bill would reduce the prohibited amount of an individual judgment debtor’s weekly disposable earnings subject to levy under an earnings withholding order from exceeding the lesser of 10% 25% of the individual’s weekly disposable earnings or 1 ⁄3 30% of the amount by which the individual’s disposable earnings for the week exceed 40 times the state minimum hourly wage, or applicable local minimum hourly wage, if higher, in effect at the time the earnings are payable.”
Per an “Action Alert”:
Attention CAC members and ACA members in California:
We need your help to stop a bill that would dramatically increase California’s wage exemptions from garnishment for debtors earning more than six figures. We are asking all CAC members in the state and others involved in the credit and collection industry to take just 30 seconds to click the link below which will generate an email letter to your specific representative in the State Assembly. This letter directly asks them to VOTE NO on this legislation.
California law already places significant limits on the amount a creditor can garnish while providing a process to exempt necessaries of life for low income workers entirely. This legislation, which is quickly moving through the legislature, would provide an incentive for affluent debtors to avoid their financial obligations. Click here to review the full bill (SB 501Wieckowski).
You can help our lobbying team fight this legislation by sending a letter to your legislator today.
Please take 30 seconds and CLICK THIS LINK to send an email letter. It’s easy and it’s free!
Just follow these simple instructions:
1. CLICK THE LINK
2. Fill in ALL required fields
3. Click “Preview” — your state Assemblyperson’s names will automatically populate
4. Click send and you’re done!
Don’t forget to FORWARD this email to others in the industry so they can help too!
Please consider sending this email to your friends, family and colleagues. The more letters we collectively generate, the better our chances of stopping this legislation.
Thank you in advance for your help!
California Association of Collectors