Apr 26, 2010
Banks, credit card companies and collection agencies are garnishing wages much more frequently. In the Phoenix area, garnishments are up 121% since 2005. In Cleveland, pay seizures increased 30% just between 2008 and 2009.
By federal law, workers who have their wages garnished by credit collectors today can be left with just $217.50 per week. That’s less than what a full-time worker makes on minimum wage and only one half the poverty level for a family of four!
Many of the people garnished ran up their credit cards because their health insurance did not cover a large part of the bill. Or their boss laid them off and state unemployment benefits did not provide enough to live on. Credit cards were their last resort. Then the credit card companies piled on exorbitant interest rates and other fake charges!
And now these credit company vultures, who had a major hand in creating the very economic crisis that pushed many people into debt, cannot wait to feed on their kill.