For the first time in 40 years, employers can garnish the wages of workers who owe money to debt collectors.
It’s possible through the Enforcement of Money Judgments Act, which became provincial law on December 1st.
Credit Counselling Services of Atlantic Canada President and CEO John Eisner says anyone who has a judgment recorded against them can have their wages garnished.
“For a consumer that has a debt, don’t be surprised now if they try to push the judgment through so they can go after you for garnishment on your wages,” Eisner said.
Eisner says for many years collection agencies and finance companies have used threats and intimidation like this knowing the law didn’t exist, but with the legislation in place, he fears it will get worse.
Wage garnishment in New Brunswick is now being allowed, thanks to a new Act from the provincial government. The Act gives creditors in New Brunswick the ability to garnish debtors directly through their employers. https://t.co/B1VUMU09DS #NewBrunswick #WageGarnishment pic.twitter.com/tE1Vv5xyyG
— CCS Atlantic Canada (@SolveYourDebts) January 8, 2020
His company has been working with people in Nova Scotia, P.E.I. and Newfoundland and Labrador, where this law already exists.
Eisner says garnishment can be avoided if arrangements are made early.
He says employers will know about their staff member’s financial difficulty, which can be embarrassing.
Eisner has concerns about the enforcement of this new legislation, which will be carried out by bailiffs and sheriffs.
“What expertise do they have on doing the assessments? I think we already know that it is not something they are equipped with. We offered to the government just three or four months ago that we could come in and provide some training and we were never taken up on it. I do have some reservations,” Eisner said.
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