What is administrative wage garnishment?
Administrative wage garnishment is a process by which federal agencies require a private sector employer to withhold up to 15% of an employee. s disposable pay to satisfy a delinquent debt owed to the federal government. A court order is not required. Before garnishing an employee’s wages, federal agencies are required to send the employee a warning notice and to give the employee an opportunity to contest the debt and/or garnishment. All potential garnishees who wish to contest the action have the right to inspect and copy debt records, to enter into a repayment agreement, and to have a hearing. 6. How are the private collection agencies regulated? The collection efforts of private collection agencies are governed by various federal and state laws, including the Fair Debt Collection Practices Act. Under Treasury’s contract with private collection agencies, there are numerous controls to ensure that debtors are treated fairly. FMS is responsible for the management of this collection co
