Wage garnishment for consumer debts may occur after a creditor goes to court and wins a judgmentagainst a consumer. A judgment is a court decision that the consumer owes a specific sum, allowing acreditor to take steps to seize a portion of the consumer’s wages to pay the judgment.
In 2018, more than a quarter of all Californians had a debt in collection.1 The increases in unemployment claims and general job loss due to COVID-19 will without question result in an explosion of debts in collection that will disproportionately impact the most vulnerable consumers who are least able to weather a financial crisis and…
Read More about Stabilizing Consumer Finances During and After the Coronavirus Crisis in California
The Consumer Financial Protection Bureau (CFPB)’s supplemental debt collection rulemaking proposes disclosures for consumers when debt collectors attempt to collect after the statute of limitations (the deadline to sue) has expired. These accounts are called time-barred debts. This document summarizes the proposed disclosures, outlines significant concerns, provides recommendations, and explains how to file comments.
Read More about Time-Barred Debt Disclosures in CFPB's Supplemental Rulemaking Fall Short
Statement for the Record of National Consumer Law Center (on behalf of its low-income clients)for hearing on Examining Overdraft Fees and Their Effects on Working Families before theSubcommittee on Financial Institutions and Consumer Protection of the Senate Committee on Banking, Housing and Urban Affairs
Statement for the Record of National Consumer Law Center (on behalf of its low-income clients)for hearing on The End of Overdraft Fees? Examining the Movement to Eliminate the Fees Costing Consumers Billions before the Subcommittee on Consumer Protection and Financial Institutionsof the U.S. House of Representatives Committee on Financial Services
The 66 undersigned organizations urge the members of this committee to support Rep. CarolynMaloney’s Overdraft Protection Act of 2021. Overdraft-related fees cost consumers $15 billion each year. By far, the most expensive way tohave an overdraft covered is through an overdraft coverage fee. Financial institutions could offerand encourage their customers to choose lower cost overdraft…
Read More about Group Letter Supporting HR 4277, the Overdraft Protection Act of 2021
The COVID-19 pandemic has devastated our economy, leaving over 26 million consumers unemployed (as of late April 2020) and forcing countless small businesses to close. This economic catastrophe will also lead to damaged credit reports and plunging credit scores for tens of millions of consumers. Lower credit scores will not only impede consumers’ ability to…
Read More about Protecting Credit Reports During the COVID-19 Crisis
The COVID-19 crisis will damage the credit reports of tens of millions of consumers, who will see their scores nosedive because of mass unemployment and loss of income. Lower credit scores will impede consumers’ ability to get affordable credit, jobs, housing, and to generally recover when this crisis is over. Yet the response to this…
Read More about Credit Reports and the COVID-19 Crisis: What States Should Do to Help Consumers
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