Senator Treat sponsors bill to limit wage garnishment provisions

State Senator Greg Treat of Oklahoma City is advancing a proposal to limit the circumstances in which wages can be garnished (withheld from a worker) through court order aimed at employers. ( Editor's note: Late yesterday the bill had been filed but CapitolBeatOK did not yet have a number. We will insert the Senate Bill number into this story later .) The bill from the first-term Republican would leave untouched provisions allowing garnishment for child and spousal support. In related news, two Democratic legislators are pushing a bill to give the state new wage garnishment powers.

Treat's bill would amend 12 O.S. 2011, sec. 1171. As introduced yesterday, the bill “relates to the right to garnishment, prohibiting garnishment of certain wages, [and] providing exceptions.”

In an interview with CapitolBeatOK, Treat described his measure as “real straight-forward.” During his years as an aide to U.S. Sen. Tom Coburn of Muskogee, Treat said he learned “there was a simmering complaint among businessmen, especially small businesses, who were having to help pay off debt that had nothing to do with them or their business.”

He related instances of small business people “without staff other than themselves and their workers.” He made a succinct philosophical argument outlining concerns over business diversion from productivity. Growth of payday loan companies has seemed to exacerbate concerns among business people, he said, and shared complaints he has heard from employers receiving “threatening letters from attorneys” about wage garnishment disagreements.

Sen. Treat candidly acknowledged this might be the start of “an uphill battle, perhaps a multi-year discussion.” Still, he told CapitolBeatOK, there is a scattered base of support that could form into a coalition. He believes, however, “a lot of players will come out of the woodwork to oppose this.”

For himself, Treat said he has “no ax to grind. I just am concerned about a burden placed on an employer over a private contract outside of their control.” He noted that Texas already excludes commercial debts from wage garnishment provisions.

no wage garnishment payday loans - News


Senator Treat sponsors bill to limit wage garnishment provisions

Growth of payday loan companies has seemed to exacerbate concerns among business people, he said, and shared complaints he has heard from employers receiving “threatening letters from attorneys” about wage garnishment disagreements. Sen.



Stories appearing in Thursday's edition

NO CHILD LEFT BEHIND: President Barack Obama on Thursday will free the first 10 states from the strict and sweeping requirements of the No Child Left Behind law, giving leeway to states that promise to improve how they prepare and evaluate students,



Ex-spouse's bankruptcy can be problem after divorce

It may not be good for team support to start suing. I owe money for a student loan. A collector told me that if I did not promptly make arrangements to pay, he would garnish my wages. I thought wage garnishment was illegal in Texas.



For-Profit Kaplan University Pays Executives a Quarter Billion Dollars ...
For-Profit Kaplan University Pays Executives a Quarter Billion Dollars ...

Instead, they are left with no education, no jobs and few prospects - for when a student defaults on their student loans, they face wage garnishment, and if they still owe when they reach the age of Social Security eligibility (whatever age this will




FTC Cracks Down on Payday Lenders Big Sky Cash and Western ...

Here’s yet another reason to stay away from payday lenders: some of the more unscrupulous ones may try to illegally garnish your paycheck.

That’s what the Federal Trade Commission has accused Payday Financial LLC of doing.

The FTC has filed an action in U.S. district court, contending that the payday lender allegedly attempted to illegally garnish consumers’ wages.

Pending a trial in the matter, Payday Financial has agreed to stop the alleged misconduct.

The FTC has been on a tear recently, cracking down on all kinds of scams – from debt settlement schemes to payday loan abuses .

In this most recent action, the FTC alleges that Payday Financial, LLC, doing business as Lakota Cash and Big Sky Cash, along with other defendants, became overzealous in its attempt to collect on payday loans and illegally attempted to garnish consumers’ wages without obtaining a court order.

According to the FTC, defendant Martin A. Webb operates Payday Financial, LLC, and several related businesses in Timber Lake, South Dakota.

The companies offer cash-strapped consumers all across the country short term, high-cost payday loans ranging from $300 to $2,525.

The businesses also heavily promote their services via TV ads and websites including www.bigskycash.com and www.westernsky.com .

In Trouble Yet Again

As regular readers of AskTheMoneyCoach.com may recall, this isn’t the first time these particular payday lenders have run into trouble with regulators.

In March, 2011, Maryland regulators shut down Martin Webb, Big Sky Cash and Western... , for illegally charging consumers exorbitant interest rates – sometimes as high as 1,825% – in violation of Maryland law, which caps payday loans at 33%.

The FTC complaint alleges that when a consumer does not pay back a payday loan on time, the defendants send documents to his or her employer that mimic those used by federal agencies collecting debts owed to the government in an attempt to garnish the consumer’s wages.


no wage garnishment payday loans - Bookshelf

Codependent no more, how to stop controlling others and start caring for yourself

Codependent no more, how to stop controlling others and start caring for yourself

Creator: Melody Beattie | Health & Fitness -
Discusses codependency and contains real-life examples, personal reflections, exercises, and self-tests designed to help people overcome their codependency.
Publisher: Hazelden Publishing & Educational Services

No Logo, No Space, No Choice, No Jobs

No Logo, No Space, No Choice, No Jobs

Creator: Naomi Klein |
"--Gloria Steinem "Naomi Klein's trenchant book is the perfect introduction to and explanation of those stunning events [in Seattle] . . . This book is the very essence of cool.
Publisher: Picador USA

No Greater Love

No Greater Love

Creator: Mother Teresa, Becky Benenate, Thomas Moore, Joseph Durepos | Religion -
A collection of inspirational writings and observations by the late Nobel Peace Prize winner includes reflections on love, prayer, giving, service, poverty, generosity, hope, forgiveness, and Jesus. Reprint.

No More Dirty Looks, The Truth about Your Beauty Products--and the Ultimate Guide to Safe and Clean Cosmetics

No More Dirty Looks, The Truth about Your Beauty Products--and the Ultimate Guide to Safe and Clean Cosmetics

Creator: Siobhan O'Connor, Alexandra Spunt | Health & Fitness -
Most of us don't realize that the products we use every day can expose us to thousands of chemicals that are readily absorbed through our skin. The impact on your health? It's not pretty.
Publisher: Da Capo Lifelong Books

The No-cry Sleep Solution, Gentle Ways to Help Your Baby Sleep Through the Night

The No-cry Sleep Solution, Gentle Ways to Help Your Baby Sleep Through the Night

Creator: Elizabeth Pantley | Family & Relationships -
Tips from The No-Cry Sleep Solution: Uncover the stumbling blocks that prevent baby from sleeping through the nightDetermine--and work with--baby's biological sleep rhythmsCreate a customized, step-by-step plan to get baby to sleep through ...
Publisher: McGraw-Hill