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SECU eliminates wage garnishment option
RALEIGH, N.C. (5/25/11)--State Employees’ CU (SECU), Raleigh, N.C., will no longer use wage garnishment as a collection tool for its members. Although the state of North Carolina protects employees’ wages against garnishment, SECU has members in all 50 states, and wage garnishment is legally available in the bordering states of Georgia, Virginia and Tennessee. The ban on wage garnishment as a collection practice is effective June 1, said SECU. “In this economic environment, with the increased financial stress on members from layoffs, furloughs, and cutbacks, wage garnishment can further heighten the family crises that are now occurring to many fine, dependable SECU members,” said Phil Greer, senior vice president of loan administration at SECU. “Wage garnishment is also highly disruptive to the employer/employee relationship for members who are continuing to work, creating additional stress in the work environment,” Greer added. “These are exceptionally severe economic times and require exceptional care in helping members work through this crisis.” Greer noted that SECU supports the use of wage garnishment in helping resolve social obligations such as taxes, child support, alimony and fraud. “Working directly with the member on personal debts is the better, fairer choice in this economic climate,” he said. “Helping our good members regain their financial footing quickly is the best way to assure that existing obligations will be honored.”


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