Collector – January 2020 - 31

need for consumers to have adequate
funds for necessities. California, Colorado,
Washington and Wyoming recently
enacted new garnishment laws.
Effective on Sept. 1, 2020, California S.B.
616 makes multiple changes to the state's
garnishment laws, including:
* Extending the amount of time
consumers have to file a claim of
exemption. Currently, they have 10
days. Under the new law, they have 15
days if personally served with a notice
of levy and 20 days if served by mail.
Creditors have 15 days to oppose the
exemptions.
* Automatically exempting consumer
funds "equal to or less than the minimum
basic standard of adequate care for a
family of four." The State Department
of Social Services annually adjusts this
figure, currently set at $1,724.
* Exempting money paid to the
consumer from the Federal Emergency
Management Agency.
* Specifying that disposable earnings
that would otherwise not be subject
to levy under certain existing wage
garnishment procedures are exempt.
Applicable to writs of garnishment
issued after Oct. 1, 2020, Colorado H.B.
1189 decreases the amount subject to
garnishment from 25% to 20% of the
individual's disposable weekly earnings,
or the amount by which an individual's
disposable earnings for a week exceed 40
times (previously 30 times) the state or
federal minimum wage, whichever is less.
The Colorado law also:
* Deducts from employees' disposable
earnings subject to garnishment the
cost of health insurance provided by
their employer and withheld from
their earnings.
* Creates an exemption permitting
individuals to prove the amount of
their pay subject to garnishment
should be further reduced or
eliminated altogether if the individual
can establish that such reductions are
necessary to support themselves or
their family.

COLLECTOR 01.20

* Requires timely notice to those
whose wages are being garnished
and increases the amount of time
after receiving the notice before
garnishment begins.
Washington H.B. 1602-which is in
effect-makes several changes to the
state's debt collection interest and wage
garnishment laws:
* Changes the post-judgment interest
rate for unpaid consumer debt from
12% to 9% above the prime rate, unless
the judgment interest rate is specified
in the contract.
* Increases the bank account exemptions
from $500 to $2,000 for judgments on
consumer debt.
* Raises wage garnishment exemptions the
greater of 35 times the state minimum
wage or 80% of disposable earnings for
judgments on consumer debt.
* Amends the notice of garnishment
and listed rights to provide if the
writ is not a writ for the collection of
consumer debt, the exemption language
pertaining to consumer debt may
be omitted.
Effective July 1, 2019, Wyoming H.B.
89 amended the state's garnishment law to
extend protection for exempt funds. The law:
* Specifies that a consumer's disposable
earnings shall remain exempt if the
earnings were deposited in a bank
account within 20 days before service of
the writ; on the day of service of the writ;
or within 10 days after service of the writ.
* Allows a creditor to request
garnishment from both a consumer's
paycheck and bank account but
provides that any proceeds remaining
after successfully garnishing a paycheck
shall be entirely exempt from execution
when deposited in a bank account, thus
preventing "double dipping."
Collection agencies should adjust
their garnishment practices in these
states to ensure compliance with the new
requirements.
Tim Dressen is a communications consultant
and former editor of Collector magazine.

1

Recent state legislation
related to data security,
medical debt, student
loan licensing and wage
garnishment signal the
need to keep policies and
procedures current.

2

Protecting consumers
from financial hardship
is often the basis for
legislation affecting collection
professionals.

3

Similar bills are likely to
surface as legislatures
reconvene this year.
31



Collector – January 2020

Table of Contents for the Digital Edition of Collector – January 2020

Upfront
Industry News
Best Practices
FYI
Collection Tips
Radical Redesigns
Four State Legislative Trends to Watch
Calendar
Honor Roll
Education Spotlight
Our International Reach
Tech Times are Changing
Exceptional Programming and Speakers Pay Off
Looking Forward to Monday Morning
Contextualizing Consumer Complaints
Another Look at Written Disputes
ACA SearchPoint
Ad Index
Membership
Last Word
Collector – January 2020 - Cover1
Collector – January 2020 - Cover2
Collector – January 2020 - 1
Collector – January 2020 - 2
Collector – January 2020 - 3
Collector – January 2020 - Upfront
Collector – January 2020 - 5
Collector – January 2020 - Industry News
Collector – January 2020 - 7
Collector – January 2020 - 8
Collector – January 2020 - 9
Collector – January 2020 - 10
Collector – January 2020 - 11
Collector – January 2020 - Best Practices
Collector – January 2020 - 13
Collector – January 2020 - FYI
Collector – January 2020 - 15
Collector – January 2020 - Collection Tips
Collector – January 2020 - 17
Collector – January 2020 - 18
Collector – January 2020 - 19
Collector – January 2020 - 20
Collector – January 2020 - 21
Collector – January 2020 - 22
Collector – January 2020 - 23
Collector – January 2020 - Radical Redesigns
Collector – January 2020 - 25
Collector – January 2020 - 26
Collector – January 2020 - 27
Collector – January 2020 - Four State Legislative Trends to Watch
Collector – January 2020 - 29
Collector – January 2020 - 30
Collector – January 2020 - 31
Collector – January 2020 - Calendar
Collector – January 2020 - Honor Roll
Collector – January 2020 - Education Spotlight
Collector – January 2020 - 35
Collector – January 2020 - Our International Reach
Collector – January 2020 - 37
Collector – January 2020 - Tech Times are Changing
Collector – January 2020 - 39
Collector – January 2020 - 40
Collector – January 2020 - 41
Collector – January 2020 - Exceptional Programming and Speakers Pay Off
Collector – January 2020 - 43
Collector – January 2020 - 44
Collector – January 2020 - Looking Forward to Monday Morning
Collector – January 2020 - Contextualizing Consumer Complaints
Collector – January 2020 - 47
Collector – January 2020 - 48
Collector – January 2020 - 49
Collector – January 2020 - Another Look at Written Disputes
Collector – January 2020 - 51
Collector – January 2020 - ACA SearchPoint
Collector – January 2020 - Ad Index
Collector – January 2020 - Membership
Collector – January 2020 - 55
Collector – January 2020 - Last Word
Collector – January 2020 - Cover3
Collector – January 2020 - Cover4
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