What does the Consumer Credit Protection Act cap wage garnishment at?

The Consumer Credit Protection Act (CCPA) sets specific limits on wage garnishment to protect consumers from excessive deductions of their earnings. Under the provisions of this act, the maximum amount that can be garnished from an individual's disposable earnings for debt payment is 25%. This limit is designed to ensure that individuals retain a significant portion of their income to meet their basic living expenses while still allowing for creditor repayment.

The 25% cap is particularly relevant for situations involving consumer debts, such as credit card payments or personal loans. By regulating the amount that can be taken out of wages, the CCPA aims to balance the rights of creditors to collect debts while safeguarding the financial well-being of debtors. This is why 25% is not only a specified limit under the act but also an important consideration for debt management and financial planning.