State Employees' Credit Union Voluntarily Removes Garnishment as a Collection Option

RALEIGH, N.C., May 24, 2011 /PRNewswire/ -- The Board of Directors of State Employees' Credit Union (SECU) has approved eliminating the use of wage garnishment as a collection tool with SECU members in all states.  Although North Carolina, as a State, has a long history of protecting wages of employees 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, 2011.  

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Phil Greer, Senior Vice President of Loan Administration at SECU stated, "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.  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.  These are exceptionally severe economic times and require exceptional care in helping members work through this crisis."  

Greer went on to say, "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.  Helping our good members regain their financial footing quickly is the best way to assure that existing obligations will be honored."

About SECU

SECU is a not-for-profit financial cooperative owned by its members. SECU has been providing the employees of the State of North Carolina and their families with consumer financial services for over 70 years. Currently serving more than 1.6 million members, SECU provides services through 237 branch offices, nearly 1,100 ATMs, 24/7 Contact Centers and a website, www.ncsecu.org.

SOURCE State Employees' Credit Union