https://www.cbc.ca/news/canada/new-brunswick/credit-experts-wage-garnishee-1.5419220
Credit expert warns New Brunswickers about new law allowing wage garnishment
Law went into effect in December allowing creditors to garnishee wages with court order
CBC News · Posted: Jan 08, 2020 2:59 PM AT
The law would, for the first time in New Brunswick, allow creditors to take borrowers to court to have their wages garnisheed. (Lyzaville Sale/CBC)
A Saint John credit counsellor is warning New Brunswickers about a new law that could allow creditors to garnishee the wages of people who owe them money.
The Enforcement of Money Judgments Act came into effect in December.
The law would, for the first time in New Brunswick, allow creditors to take borrowers to court to have their wages garnisheed.
"For 40 years we've not had a money enforcement act and creditors have threatened, or collection agencies have threatened, 'We're going to garnish your wages', said John Eisner, the president of Credit Counselling Services of Atlantic Canada.
It was nothing more than a threat.
"But now with the new act, if they have a judgment, they can act immediately."
In a statement late last year, Justice Minister Andrea Anderson-Mason called the new law a "complete overhaul."
"In many cases people who have received a judgment in their favour struggle to receive what they are entitled to," said Anderson-Mason.
"This act is being brought into force to address this problem and modernize the law."
John Eisner, the president of Credit Counselling Services of Atlantic Canada, worries the new law will be used by collection agencies as an intimidation tool. (CBC )
Eisner said the new rules would exempt some earnings, such as pensions and RRSP contributions, but he's concerned about how it will be determined what percentage of earnings can be taken.
"The people that are going to be determining [the percentage] are the sheriffs or the bailiffs," said Eisner.
"Certainly that would not be their expertise."
Eisner is also concerned about the potential stigma on employees who have their wages garnisheed, since the employer would have to be made aware of the garnishee order.
And, he worries that creditors will use the new law as an intimidation tactic.
"I think it'll fall into the wrong hands," said Eisner.
"People [will] be threatening and intimidating people saying 'we're going to garnish your wages' when in true reality they may not be able to. They need to have a judgment placed on them in order for that garnishment to work."
Eisner's advice is to deal with any debt issues now, before they have a chance to work their way through the court system.
"It's a new year. Maybe it's time to take a good hard look and say 'let's get someone to properly look at it,'" said Eisner.
192 Comments
Aaron Allison
People are over taxed, Poverty is out of Control, Hydro , Insurance and Medication people can know longer afford to Pay. The Cost of food is criminal in New Brunswick. Yep what a stupid move by the PC.
David Raymond Amos
Reply to @Aaron Allison: Welcome to the Circus
Aaron Allison
I agree with Eisner. and in my opinion the law should be REPEALED.
David Raymond Amos
Reply to @Aaron Allison: Me Too
David Raymond Amos
Reply to @Aaron
Allison: BTW I talked to Eisner today and explained how we Have the
Canada Revenue Agency and Justice Webb of the Federal Court of Appeal in
common and he told me of someone else we had in common https://www.cbc.ca/news/business/credit-counselling-services-of-atlantic-canada-charitable-status-court-1.3659822
Federal court rules against Credit Counselling Services of Atlantic Canada
Now operates as a non-profit and cannot issue tax receipts
Blair Rhodes · CBC News · Posted: Jun 30, 2016 12:05 PM ET
BruceJack Speculator
Responsible borrowers who pay their debts are supporting those who do not because interest rates must be high enough to allow for default. One way to beat this is not to borrow (or as Johnny Horton said earlier, use assets as collateral for a loan) or buy common shares in the banks so you get income from the interest others are paying. Can start small. Get a good credit rating. Then you can borrow to invest and the loan interest is a tax credit against the dividends you earn.
David Raymond Amos
Reply to @BruceJack Speculator: I did reply to you
David Raymond Amos
Content disabled
Reply to @BruceJack Speculator: Go figure why you can't read it https://www.sec.gov/Archives/edgar/data/230098/000113031902001603/m08476e18vk.htm
David Raymond Amos
Reply to @BruceJack
Speculator: FYI it was about a Review of Current Investigations and
Regulatory Actions Regarding the Mutual Fund Industry on Thursday,
November 20, 2003
Yves Savoie
They can start with the MP of NB that owes 250 000$.....good starting point!
David Raymond Amos
Reply to @Yves Savoie: Do tell us who
David Stairs
long overdue.....imagine people having to take responsibility for their actions...
Ben Haroldson
Reply to @David Stairs: Yup gotta help them lawyers out.
David Raymond Amos
Reply to @Ben Haroldson: Methinks many a true word is said in jest N'esy Pas?
Lou Bell
Too many young people haven't a clue about money and financing. A great example is the furniture stores who will put the furniture in ones home today. The payments the customer makes on that 800 dollar sofa will total 2400 dollars or more by the time it's paid for . Just many more exploited deer in the headlights ! Waaay too many !!
David Peters
Reply to @Lou Bell:
We can thank the public school system for that, imo...and, it's more than likely deliberate.
We can thank the public school system for that, imo...and, it's more than likely deliberate.
David Peters
Reply to @David Peters:
...or, rather, it was deliberate, a long time ago. Now it's just habit.
...or, rather, it was deliberate, a long time ago. Now it's just habit.
David Raymond Amos
Reply to @Lou Bell: Methinks you should clue us in about what you know about money and financing N'esy Pas?
BruceJack Speculator
Reply to @David Raymond Amos: ?
David Raymond Amos
Content disabled
Reply to @BruceJack Speculator: Let me know when you find the transcript and webcast of a hearing I inspired
https://www.banking.senate.gov/hearings/review-of-current-investigations-and-regulatory-actions-regarding-the-mutual-fund-industry
Review of Current Investigations and Regulatory Actions Regarding the
Mutual Fund Industry
Date: Thursday, November 20, 2003 Time: 02:00 PM
Topic
The Committee will meet in OPEN SESSION to conduct the second in a
series of hearings on the “Review of Current Investigations and
Regulatory Actions Regarding the Mutual Fund Industry.”
Witnesses
Mr. Stephen M. Cutler
Director - Division of Enforcement
Securities and Exchange Commission
Mr. Robert Glauber
Chairman and CEO
National Association of Securities Dealers
Eliot Spitzer
Attorney General
State of New York
https://www.banking.senate.gov/hearings/review-of-current-investigations-and-regulatory-actions-regarding-the-mutual-fund-industry
Review of Current Investigations and Regulatory Actions Regarding the
Mutual Fund Industry
Date: Thursday, November 20, 2003 Time: 02:00 PM
Topic
The Committee will meet in OPEN SESSION to conduct the second in a
series of hearings on the “Review of Current Investigations and
Regulatory Actions Regarding the Mutual Fund Industry.”
Witnesses
Mr. Stephen M. Cutler
Director - Division of Enforcement
Securities and Exchange Commission
Mr. Robert Glauber
Chairman and CEO
National Association of Securities Dealers
Eliot Spitzer
Attorney General
State of New York
David Raymond Amos
Reply to @BruceJack Speculator: Methinks I am wasting my precious time trying to reply to you N'esy Pas?
Emilien Forest
If someone gets credit to buy something and they only work when it pleases then because money is handed to them because of their ancestry, how are creditors suppose to garnish their salary when they have none.
Fred Brewer
Reply to @Emilien
Forest: Obviously, they cannot. But a collection agency will hound the
heck out of them. If the debt is significant, with a court order a
sheriff can seize and sell that person's property to satisfy the court
judgement.
David Raymond Amos
Reply to @Fred Brewer: Your point is?
Johnny Horton
Didn’t need a nee law, we s,ready have theft laws. Nail them for theft over $5000. Have the courts seize their wages and sssets and pay the debt off with appropriate fines as well.
Stephen Robertson
Reply to @Johnny
Horton: everything is always so easy in your world Johnny, no
extenuating circumstances, no grey area. Philosophically interesting,
practically not so much. Pure Libertarianism is the same as pure left
or right wing ideology impractical in the real world.
Johnny
Horton
Reply to @Stephen Robertson:
If we had systems in place to deal with those o are being the system, and most are, then we’d have more than enough resources to actually help those who truly need it.
I’ll give the shirt off my back to somethat truly needs it and isn’t just a sad lucky sympathy case who wants tigers to fix their errors,
If we had systems in place to deal with those o are being the system, and most are, then we’d have more than enough resources to actually help those who truly need it.
I’ll give the shirt off my back to somethat truly needs it and isn’t just a sad lucky sympathy case who wants tigers to fix their errors,
Johnny
Horton
Reply to @Stephen Robertson:
Plus...
On the other hand, our current system ha worked out ow so well. Maybe we should try a change, kind of like voting blue or red and getting the same results every time,
Plus...
On the other hand, our current system ha worked out ow so well. Maybe we should try a change, kind of like voting blue or red and getting the same results every time,
Sd 13789
Reply to @Johnny Horton: I guess you are pro communism lol
Johnny
Horton
Reply to @sd 13789:
Exact opposite, I believe in s completely open free system where everyone csn do as they wish and the consumers control the businesses through ethical decisions to buy or not,
Exact opposite, I believe in s completely open free system where everyone csn do as they wish and the consumers control the businesses through ethical decisions to buy or not,
Stephen Robertson
Reply to @Johnny
Horton: full disclosure, I was at one time very active in politics,
never a paid position. I currently do not hold any membership, though
that may soon change again. People have the power. The last several
provincial elections have shown politicians that they need to listen to
the electorate. 3 successive one term governments have started to get
that message to the leadership of most parties. Brand loyalty in
politics is on the decline as people demand a responsive government, and
no government wants to be one term . No government will ever give each
individual the polices that person wants, but combine reason with
responsiveness to the electorate and governance will improve. 'The
worst system of government ever created except for everything else we
have tried.' Churchill.
David Raymond Amos
Reply to @Stephen Robertson: Oh My My
David Raymond Amos
Methinks Higgy may enjoy reading this spit and chew even more that the one about Cardy and Austin N'esy Pas?
Johnny Horton
Reply to @David Raymond Amos:
Hey David how come you aren’t railing on a user name like SD 13789. I don’t believe numbers are s legsl last name yet in Canada,
David Raymond Amos
Reply to @David Raymond Amos: Methinks I heard a no-name Irving shill squawking again N'esy Pas??
Mac Isaac
As I see it, this could be a catalyst to force people to not live beyond their means and to, hopefully, pay down their debt. Too often people give in to the temptation to purchase something they want but don't need and retailers, including those selling big ticket items like cars, trucks, and electronics constantly advertise about how easy it is to own...well, when you "own" something that means you don't owe anyone anything for it. Otherwise, they don't own it, they're simply borrowing it until the repossession people come to take t back...and even then, they'll probably owe for that "service"!!
Word of advice: Pay off; don't simply pay down your monthly credit cards' statements...NO! You don't HAVE to buy that car/television/iPhone. Yes, you CAN live without them.
Johnny
Horton
Reply to @Mac Isaac:
There’s no incentive to payoff your debt. Why psy it back, when you can just no osy it and nothing really happens to you. I know people who have gone into debt multiple times and declared bankruptcy multiple times. They simply wait the few years too they csn horror again and do it all over again.
I don’t blame the lenders. I blame the real thief’s. Those who borrow and don’t osy back. Because Thst is spexsctly what is is, theft.
There’s no incentive to payoff your debt. Why psy it back, when you can just no osy it and nothing really happens to you. I know people who have gone into debt multiple times and declared bankruptcy multiple times. They simply wait the few years too they csn horror again and do it all over again.
I don’t blame the lenders. I blame the real thief’s. Those who borrow and don’t osy back. Because Thst is spexsctly what is is, theft.
Bob Smith
Reply to @Johnny Horton: They elected a "thief" to be president of the US.
Johnny
Horton
Reply to @Bob Smith:
Just because society dies something. Doesn’t make it right. Just because it’s acceptable to borrow and default, doesn’t make it right. But it’s natural if society does it mostly as a whole thst they’ll over,lol such in their decision musing in life as a fault,
Just because society dies something. Doesn’t make it right. Just because it’s acceptable to borrow and default, doesn’t make it right. But it’s natural if society does it mostly as a whole thst they’ll over,lol such in their decision musing in life as a fault,
Sd 13789
Reply to @Johnny
Horton: like it's ok to charge insurance fees on a mortgage when the
banks already have a secured loan on the house huh. just like its ok for
the banks to charge 30% interest on loans. just like it's ok to lock
you up on a 5 year mortgage with a penality when in the end they lost
nothing! just because it is written on contract doesn't make it right.
doesn't mean that it is right it is because you had no choice like
everyone else.
Johnny
Horton
Reply to @sd 13789:
My grandfather built his house over a thirty year period as he had money to do so. For twenty years there were stairs thst went to nowhere as he didn’t have the money to do the second floor. The outhouse didn’t leave the back yard until the 70£ and he lived ins fair size town in NB.
One can live without borrowing, if one wants someone e,see money they should be prepared to pay for it whatever the lender wants to charge,
My grandfather built his house over a thirty year period as he had money to do so. For twenty years there were stairs thst went to nowhere as he didn’t have the money to do the second floor. The outhouse didn’t leave the back yard until the 70£ and he lived ins fair size town in NB.
One can live without borrowing, if one wants someone e,see money they should be prepared to pay for it whatever the lender wants to charge,
Mac Isaac
Reply to @Johnny
Horton: Just wondering: Are some of your keys sticking? A lot of what I
see from you is unintelligible. .not just today, but most days. Either
they're sticking or you're typing so fast you're unaware of this.
David Raymond Amos
Reply to @Mac Isaac: I'll go with the former observation
David Raymond Amos
Reply to @Mac Isaac: However you are truly scary
Ken Dwight
Irving is going after defaulted payments again. This time they can use their puppet in charge to write a law for them.
Marguerite Deschamps
Reply to @Ken Dwight: You got it.
Dianne MacPherson
Reply to @Ken Dwight:
What an asinine statement !!!!
What an asinine statement !!!!
David Raymond Amos
Reply to @Marguerite Deschamps: Methinks sometimes less is more N'esy Pas?
Winston Smith
Reply to @Dianne MacPherson
The same would obviously apply to you. Birds of a feather.
David Raymond Amos
Methinks many would agree that the Justice Minister Andrea Anderson-Mason made a major faux pas for the benefit of banksters N'esy Pas?
David Raymond Amos
Reply to @David
Raymond Amos: BTW The Minister of Revenue Canada and every Attorney
General in Canada knows why I attended this hearing in particular
Federal court rules against Credit Counselling Services of Atlantic Canada
Now operates as a non-profit and cannot issue tax receipts
Credit Counselling Services of Atlantic Canada will not regain its charitable status, a federal court has ruled.
The organization has lost its bid to overturn a decision by the Minister of National Revenue.
In a decision released today, the Federal Court of Appeal upheld a ruling by the minister that said the service does not qualify as charitable activity under the definition in the legislation.
The president of Credit Counselling Services, John Eisner, says it's "business as usual."
Eisner said the service has been operating without charitable status since the minister's decision was issued in 2013. He said the only difference is they can't issue charitable receipts.
"We felt that we did everything right," Eisner said.
"We felt we had to fight it [the minister's decision]," he said.
The service, which is based in Saint John, offers financial advice and debt management services for its clients through offices across Atlantic Canada. It has operated as a non-profit since losing its charitable status.
On its website, the service says it doesn't receive any government funding, and the majority of its funding comes from voluntary donations from the creditors they deal with.
The organization has lost its bid to overturn a decision by the Minister of National Revenue.
In a decision released today, the Federal Court of Appeal upheld a ruling by the minister that said the service does not qualify as charitable activity under the definition in the legislation.
'Business as usual'
The president of Credit Counselling Services, John Eisner, says it's "business as usual."
Eisner said the service has been operating without charitable status since the minister's decision was issued in 2013. He said the only difference is they can't issue charitable receipts.
"We felt that we did everything right," Eisner said.
"We felt we had to fight it [the minister's decision]," he said.
The service, which is based in Saint John, offers financial advice and debt management services for its clients through offices across Atlantic Canada. It has operated as a non-profit since losing its charitable status.
On its website, the service says it doesn't receive any government funding, and the majority of its funding comes from voluntary donations from the creditors they deal with.
Banks scrap joint donations to credit counselling
A
group representing non-profit credit counselling agencies across Canada
says the country's banks are dismantling a single, unified donation
program and moving instead to a one-on-one system that could mean more
red tape and increased costs for the group.
Credit Counselling Canada, or CCC, said the current program, where banks collectively donate money to help it offer counselling and education programs for consumers, is being scrapped at the end of October.
CCC director Scott Hannah said once the program ends it will have to negotiate separate donation agreements with each of the 19 banks and other financial institutions it currently deals with in Canada.
"It's disappointing," Hannah said of the upcoming change.
"Before, we had a national agreement where all banks agreed to the same conditions and standards. Now, they will have to negotiate with our national association on a one-on-one basis."
The program has been administered by the Canadian Bankers Association, which will step away from that role altogether as of Nov. 1.
Hannah is concerned the new system will mean a lot more administration work for his non-profit organization, take more time and cost more to handle.
What's more, there is a concern that the CCC could receive fewer funds overall.
He said the association is currently talking to the banks about how to go forward with the new system, and how it will work.
"Our hope is that we are going to have a similar type of agreement that will allow our members to continue on with their good work both proactively and from a rehabilitation standpoint," Hannah said.
"Right now, our existing funding agreement allows us to do that."
CCC represents nine non-profit credit counselling agencies, each with offices throughout Canada.
The timing is seen to be particularly bad given the recession, rising unemployment and increased bankruptcy rates among Canadians.
Personal bankruptcies rose 54.3 per cent in June compared with the same month last year, to a total of 13,792, according to the federal Office of the Superintendent of Bankruptcy. The overall rate for personal and business bankruptcies was a 51.1 per cent rise year-over-year, or 14,418 insolvencies.
"Our goal is to be able to maintain a level of support that meets the needs of Canadians, especially in these challenging times," Hannah said.
He said he hopes a new system could potentially mean increased funding to compensate for both the higher costs to run the programs, as well as the greater need to help Canadians who are struggling financially during the current economic downturn.
The Canadian Bankers Association said banks have donated to the CCC for the past 10 years according to its national donation policy.
In 2007, that amounted to $12 million of funding to 28 not-for-profit credit counselling agencies across the country, bankers association spokeswoman Maura Drew-Lytle said.
She said the program will change from "industry policy to individual bank policies" arranged with the credit counselling industry.
"The CBA will no longer be involved in making these arrangements," she said in an email.
Drew-Lytle said banks will continue to support credit counselling agencies, "but have come to the view that a one-size-fits-all policy through the CBA may not be the best way to provide that support."
She said the new approach will give the banks more flexibility to offer funding based on their individual business priorities.
"While the method of providing funding is changing, the banks' commitment to credit counselling and financial literacy is not," she said.
Individual banks contacted refused to comment on the upcoming change, or were not immediately available.
Credit Counselling Canada, or CCC, said the current program, where banks collectively donate money to help it offer counselling and education programs for consumers, is being scrapped at the end of October.
CCC director Scott Hannah said once the program ends it will have to negotiate separate donation agreements with each of the 19 banks and other financial institutions it currently deals with in Canada.
"It's disappointing," Hannah said of the upcoming change.
"Before, we had a national agreement where all banks agreed to the same conditions and standards. Now, they will have to negotiate with our national association on a one-on-one basis."
The program has been administered by the Canadian Bankers Association, which will step away from that role altogether as of Nov. 1.
Hannah is concerned the new system will mean a lot more administration work for his non-profit organization, take more time and cost more to handle.
What's more, there is a concern that the CCC could receive fewer funds overall.
He said the association is currently talking to the banks about how to go forward with the new system, and how it will work.
"Our hope is that we are going to have a similar type of agreement that will allow our members to continue on with their good work both proactively and from a rehabilitation standpoint," Hannah said.
"Right now, our existing funding agreement allows us to do that."
Bad timing
CCC represents nine non-profit credit counselling agencies, each with offices throughout Canada.
The timing is seen to be particularly bad given the recession, rising unemployment and increased bankruptcy rates among Canadians.
Personal bankruptcies rose 54.3 per cent in June compared with the same month last year, to a total of 13,792, according to the federal Office of the Superintendent of Bankruptcy. The overall rate for personal and business bankruptcies was a 51.1 per cent rise year-over-year, or 14,418 insolvencies.
"Our goal is to be able to maintain a level of support that meets the needs of Canadians, especially in these challenging times," Hannah said.
He said he hopes a new system could potentially mean increased funding to compensate for both the higher costs to run the programs, as well as the greater need to help Canadians who are struggling financially during the current economic downturn.
The Canadian Bankers Association said banks have donated to the CCC for the past 10 years according to its national donation policy.
In 2007, that amounted to $12 million of funding to 28 not-for-profit credit counselling agencies across the country, bankers association spokeswoman Maura Drew-Lytle said.
She said the program will change from "industry policy to individual bank policies" arranged with the credit counselling industry.
"The CBA will no longer be involved in making these arrangements," she said in an email.
Drew-Lytle said banks will continue to support credit counselling agencies, "but have come to the view that a one-size-fits-all policy through the CBA may not be the best way to provide that support."
She said the new approach will give the banks more flexibility to offer funding based on their individual business priorities.
"While the method of providing funding is changing, the banks' commitment to credit counselling and financial literacy is not," she said.
Individual banks contacted refused to comment on the upcoming change, or were not immediately available.
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