Wage Garnishment in North Carolina and the FDCPA

I recently got a call from a client who had been told by a debt collector that if the client did not pay her debt, that the debt collector would seek to have the client’s wages garnished. Here’s what you should know about wage garnishment in North Carolina.

Wage garnishment is not permitted for consumer debts that are assumed in North Carolina. If you purchased your car in North Carolina, or used a credit card that you applied for in North Carolina, or purchased goods on credit at a store in North Carolina, chances are that if you owe money, your wages CANNOT BE GARNISHED.

This is important because the Fair Debt Collection Practices Act prohibits debt collectors from threatening wage garnishment if they have no right to garnish wages. And because wage garnishment is prohibited in North Carolina for consumer debts entered into in North Carolina, such threats are violations of the FDCPA and can result in damages of up to $1,000 plus attorneys fees.

Damon Chetson is a debt defense lawyer Raleigh who helps people facing significant amounts of debt. He defends consumers against creditor law suits, and helps individuals to file, when appropriate, for bankruptcy relief under the United States Bankruptcy Code.

Call (919) 410-2826 day or night to talk directly to Damon Chetson.