[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5664 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 5664
To amend the Consumer Credit Protection Act to strengthen debt
collection exemptions to protect debtors and their families from
poverty or bankruptcy, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 7, 2016
Mr. Cummings introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Consumer Credit Protection Act to strengthen debt
collection exemptions to protect debtors and their families from
poverty or bankruptcy, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Wage and Garnishment Equity Act of
2016'' or the ``WAGE Act.''
SEC. 2. ASSIGNMENT OF EARNINGS DEFINED.
Section 302 of the Consumer Credit Protection Act (15 U.S.C. 1672)
is amended by adding at the end the following new subsection:
``(d) Assignment.--The term `assignment'--
``(1) means a contractual agreement that constitutes or
contains an assignment (as described under section 444.2(a)(3)
of title 16, Code of Federal Regulations), including an
assignment that is revocable at the will of the individual; and
``(2) does not include includes an assignment described in
paragraph (ii) or (iii) of section 444.2(a)(3) of title 16,
Code of Federal Regulations.''.
SEC. 3. ADJUSTMENT TO RESTRICTIONS ON GARNISHMENT.
Section 303(a) of the Consumer Credit Protection Act (15 U.S.C.
1673) is amended--
(1) by striking paragraph (1);
(2) by striking ``whichever is less.'';
(3) by striking ``garnishment may not exceed'' and
inserting ``garnishment or assignment may not exceed the lesser
of--
``(1) for an individual earning--
``(A) less than or equal to $1,200 (as adjusted for
inflation every 3 years, by notice, to reflect the
change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics)
a workweek, 10 percent of the individual's disposable
earnings for that workweek; or
``(B) more than $1,200 (as adjusted for inflation
every 3 years, by notice, to reflect the change in the
Consumer Price Index for All Urban Consumers published
by the Bureau of Labor Statistics) a workweek, 15
percent of the individual's disposable earnings for
that workweek; or''; and
(4) in paragraph (2)--
(A) by striking ``thirty'' and inserting ``80'';
and
(B) by striking the comma at the end and inserting
a period.
SEC. 4. RESTRICTION ON ADVERSE EMPLOYMENT ACTION BECAUSE OF
GARNISHMENT.
(a) In General.--Section 304 of the Consumer Credit Protection Act
(15 U.S.C. 1674) is amended--
(1) by amending the section heading to read as follows:
``restriction on adverse employment action''; and
(2) by amending subsection (a) to read as follows:
``(a) In General.--No employer may take any adverse employment
action against an employee because the employee's earnings have been
subjected to garnishment or assignment.''.
(b) Table of Contents Amendment.--The table of contents in title
III of the Consumer Credit Protection Act (15 U.S.C. 1671 et seq.) is
amended by amending the item relating to section 304 to read as
follows:
``304. Restriction on adverse employment action.''.
SEC. 5. STATE LAW WITH RESPECT TO ASSIGNMENTS.
(a) Exemption for State-Regulated Assignments.--
(1) In general.--Section 305 of the Consumer Credit
Protection Act (15 U.S.C. 1675) is amended--
(A) in the section heading, by inserting ``or
assignments'' after ``garnishments'';
(B) by inserting ``or assignments'' after
``garnishments''; and
(C) by inserting ``or assignment'' after
``garnishment''.
(2) Table of contents amendment.--The table of contents in
title III of the Consumer Credit Protection Act (15 U.S.C. 1671
et seq.) is amended by amending the item relating to section
305 to read as follows:
``305. Exemption for State-regulated garnishments or assignments.''.
(b) Effect on State Laws.--Section 307 of such Act (15 U.S.C. 1676)
is amended--
(1) by striking ``State'' and inserting ``State--'';
(2) in paragraph (1), by striking ``garnishments'' each
place such term appears and inserting ``garnishments or
assignments''; and
(3) in paragraph (2), by striking ``garnishment'' and
inserting ``garnishment or assignment''.
SEC. 6. EMPLOYER LIABILITY FOR FAILURE TO GARNISH.
(a) In General.--Title III of the Consumer Credit Protection Act
(15 U.S.C. 1671 et seq.) is amended by adding at the end the following
new section:
``Sec. 308. Delay of garnishment; employer liability
``(a) Delay of Garnishment.--A garnishment order directed at an
employer with fewer than 50 employees may not require such employer to
garnish the earnings of the individual who is the subject of the order
earlier than the later of the following:
``(1) 15 business days after such employer receives the
order.
``(2) 5 business days after the date on which the
individual is regularly scheduled to receive earnings.
``(3) As would otherwise be required by State law or
regulation.
``(b) Employer Liability.--No employer with fewer than 50 employees
shall be liable for failing to respond to a garnishment order unless
such employer--
``(1) has been given written notice that specifies the
nature of the employer's failure to comply with the
requirements of this title; and
``(2) does not correct the failure described in paragraph
(1) within 15 days of receipt of such notice.''.
(b) Table of Contents Amendment.--The table of contents in title
III of the Consumer Credit Protection Act (15 U.S.C. 1671 et seq.) is
amended by adding at the end the following new item:
``308. Delay of garnishment; employer liability.''.
SEC. 7. EXEMPTION FOR AMOUNTS IN DEPOSIT ACCOUNTS.
(a) In General.--Of the aggregate amount of funds of an individual
in deposit accounts, an amount equal to the poverty guideline
applicable to a 1-person household contained in the income poverty
guidelines prescribed by the Office of Management and Budget (as such
amount is annually adjusted by the Secretary of Health and Human
Services) shall be exempt and immune from attachment or seizure with
respect to any judgment related to a debt.
(b) Inclusion of Accounts.--In this subsection, the term ``deposit
accounts'' shall include any account, as such term is defined in
section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a).
(c) Rulemaking.--The Bureau of Consumer Financial Protection shall
issue such regulations as may be necessary to carry out this section.
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