On October 25, Rep. Alma Adams (D-NC) introduced a bill in the U.S. House of Representatives, seeking to protect a greater portion of consumers’ disposable income from garnishment.
If enacted, the Protecting Wages of Essential Workers Act of 2022 (H.R. 9224) would amend the Consumer Credit Protection Act to raise the amount of a consumer’s disposable income protected from garnishment to $1,000 or 75%, whichever is greater. The current limit is $217.50, which is tied to the federal minimum wage. The protected amount would also adjust annually based on the Consumer Price Index.
The bill contains several other proposed consumer protections. Employees would be protected from being fired in the event multiple garnishment orders are entered against one individual. The bill would also amend the Fair Debt Collection Practices Act to prevent collectors from taking any action, including making threats involving the arrest or imprisonment of consumers, in connection with the collection of a debt.
A copy of the proposed legislation can be viewed here.