When I was younger, and much more irresponsible I had a medical bill that I did not pay. I learned the hard way by being sued, which lead to wage garnishment. The creditor and I agreed that I would pay 25 dollars per pay period, which is twice a month. I have been with my employer for years, and this deduction has been taken without a problem. At the beginning of this year I went to a part time basis because I enrolled in school fulltime. This caused an error with payroll, and the deduction was not taken from January through September (2010). I worked with my payroll to get this corrected after receiving a letter from the creditor explaining they had not received payment, so since September the payment has been coming out. Without being notified with the paycheck I receive tomorrow they increased my garnishment to 25% of my disposable income. I have done my homework, and according the Maine state law (which is where I live) garnishments can be up to 25% of disposable income, so now I get where the deduction came from. Maine.gov states (in regards to garnishments) that: "All changes must be authorized in the same manner as when originally adopted. No garnishments will be taken in arrears." So, it seems to me that they have increased my garnishment to the maximum allowed by state law to cover the missed payments. According to what I read on Maine.gov it seems that they should not be allowed to do this without taking me to court (which is what happened back in the day when we agreed on the 25 dollars) and that they shouldn't be allowed to take payment in arrears. I am waiting for my payroll to get back to me, but so I am armed with information my question is: Are they allowed to make such a drastic increase in my garnishment to pay the missed payments without taking me back to court, or even notifying me for that matter?
Please let me know if there is more information needed. Thank you for your help.
Please let me know if there is more information needed. Thank you for your help.