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HUD Administrative Wage Garnishment

The failure to respond to a HUD demand notice will result in the federal government initiating collection actions against a debtor including an Administrative Wage Garnishment after receiving a notice of intent.  The process is similar for debts owed to other federal agencies such as the SBA.

The Debt Collection Improvement Act of 1996 (“DCIA”) authorized federal agencies such as HUD to garnish up to 15% of the disposable pay of delinquent debtors by way of Administrative Wage Garnishment.  An Administrative Wage Garnishment does not require a judgment or court order. Under Administrative Wage Garnishment, a debtor is entitled to notice and the opportunity for a hearing.  Protect Law Group has defended dozens of Administrative Wage Garnishment actions.

Eligible delinquent debts are referred to the Department of Treasury (“DOT”) within 180 days, and the DOT is authorized to use Administrative Wage Garnishment as a collection tool.  HUD may also initiate an Administrative Wage Garnishment action “in-house” where appropriate (e.g. debts returned by the DOT, co-debtor status of deceased, etc.).

Private collection agencies (PCAs) such as Performant, CBE Group, Pioneer Credit, and Conserve under contract with the DOT, are responsible for identifying debtors eligible for Administrative Wage Garnishment and for confirming that the debtor has been employed for at least 12 months.  PCAs are authorized to issue an Administrative Wage Garnishment Notice of Intent letter on behalf of HUD and to issue Administrative Wage Garnishment withholding orders to the debtor’s employer. Hearing requests are forwarded by the DOT to the federal agency when necessary.

The in-house Administrative Wage Garnishment process is similar to the DOT directed Administrative Wage Garnishment process described above except that HUD issues the Administrative Wage Garnishment Notice of Intent and the Administrative Wage Garnishment withholding order, and monitors collections.  Any HUD action against employers who do not comply must be coordinated with the applicable local HUD Office Chief Counsel.

The Housing and Urban Development Office of Appeals (“HUDOA”) conducts Administrative Wage Garnishment hearings for both in-house and DOT-initiated Administrative Wage Garnishment actions.  The procedures are similar whether in-house or through the DOT.

Administrative Wage Garnishment Notice of Intent sent by the DOT or a PCA advise the debtor of the right to request a hearing.   To be timely, the debtor must request a hearing within 15 business days after the postmark date of the Notice of Intent.

Protect Law Group has years of experience preparing appeals of Administrative Wage Garnishments to governmental agencies such as HUD.  Protect Law Group knows the intricacies of a successful Administrative Wage Garnishment appeal and will provide you with aggressive and assertive representation in order to settle your debt and defeat an Administrative Wage Garnishment.

Contact Protect Law Group today for a FREE consultation and start on the path to settling your HUD debt.

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