A study by ADP, the largest payroll provider in the U.S., found that of 13 million employees on file, 1 in every 10 of prime working age (35 to 44) had their paychecks garnished for recovery of past debt. The research was prompted by a journalistic inquiry from ProPublica and NPR, which sought to find out how past debts were affecting people trying to recover from the financial knock-out of the recession.
One such affected worker described his wage garnishment as, "A roundhouse kick." Just as he thought he might be turning the corner, his credit card company began automatically deducting twice-monthly payments from his paychecks - one quarter of what he made, which is the maximum allowable by law. The company deducts this whether he can afford it or not. The total bill now stands at $15,000, which is grossly inflated by fees and interests, and had originally started at $7,000.
"It just knocks you down and out," he was quoted as saying.
Our Miami credit card defense attorneys know many of these individuals end up in this situation after failing to respond to legal notices, warning them debtors plan to take them to court. By not showing up, debtors effectively forfeit their right to dispute the charges or at least negotiate a solution that's reasonable.