HB 4382
Require collection agencies to provide a 30 day notice prior to wage garnishments.
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill requires collection agencies operating in West Virginia to provide debtors with a 30-day written notice by certified mail before initiating wage garnishments. Additionally, agencies must send monthly statements detailing the amount collected through garnishment and the remaining debt balance. The bill also establishes requirements for licensing, bonding, record-keeping, and the handling of customer funds to ensure transparency and protect debtors.
Key provisions
- Collection agencies must notify debtors of wage garnishments via certified mail at least 30 days in advance.
- Agencies must send monthly statements detailing garnishment amounts and remaining debt.
- Collection agencies must maintain separate trust accounts for customer funds.
- Agencies must obtain a business franchise registration certificate and maintain a surety bond.
- Agencies must keep detailed records of collections and disbursements for six years.
- Agencies cannot commingle customer funds with their own.
- Agencies must pay customers net proceeds within 30 days of the month's end.
- The bill establishes procedures for bond suspension and license revocation.
Who is affected
- Collection agencies operating in West Virginia
- Debtors subject to wage garnishments
- West Virginia residents
- Employers in West Virginia
- Financial institutions holding customer funds
Notable changes
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