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Posted: Tue Oct 04, 2005 10:14 am Subject: Sonic Payday Garnishment

I work in the payroll department of my company,
Sonic Payday just called to find out if we received a wage garnishment to begin taking money out of my paycheck to pay back a loan I took out. I explained to the gentleman that I would transfer him to my supervisor but that it was my understanding that court paperwork was needed to garnish my wages. He said since I signed the authorization to garnish when I took out the loan no paperwork was needed from the court. My supervisor has already told him that this was not the case and he said he would fax it over anyway. What do I do in this case. Do I allow my company to take the money out and pay back the loan or do I wait until it goes to court. Please help.

Tracy · Posted: Tue Oct 04, 2005 10:50 am Subject:

I received an email from Sonic Payday informing me that they would contact my payroll department if I dont contact them to make payment arrangements. I am thinking this has something to do with the wage assignment, however I dont remember signing any agreement for a wage assignment when I took out the loan. I was under the impression that a wage garnishment could only be ordered by the court, however a wage assignment is some type of contract you agree to and sign and if you do so, then the lender can use this agreement to have your payroll department deduct payment. Could someone clarify please. Thanks

Posted: Tue Oct 04, 2005 11:16 am Subject:

It is very necessary to know the nature of the contract that was signed by you. You need to clearly know the fact if you signed for a wage assignment or a wage garnishment.

Under the wage assignment process, the creditor is not required to take notice from the court at the time the debt has been incurred. When the papers were served to you, if the consumer agrees to the wage assignment terms, the creditor can serve a demand on the consumer's employer if he has defaulted the loan for the portion of his weekly wages until the debt is paid off. This entire process does not require any court judgment before serving the demand to the consumer's employer.

Under the wage deduction or the wage garnishment process, the creditor is bound to obtain a court notice before judgment is filed in the name of the consumer.

The amount in both the cases deducted is the same from the employee's wages

Therefore, it is very important to know the terms of agreement before signing the papers of contract.

Regards
Roxette

Tracy · Posted: Tue Oct 04, 2005 11:32 am Subject:

I have my original contract with Sonic Payday and the only mention of a "wage assignment" is as follows "Security Interest: You are giving us a security interest in your wages in the form of an assignment of wages". The contract does not explain what this means, nor did I have the faintest idea what it meant when I signed it. I thought it had to do with my paycheck as being security for repayment of the loan, not that I was giving permission for my paycheck to be garnished if payment was late or if I defaulted. If they are able to get away with this, then all payday lenders could put a statement like this in their contract. That is a scary thought. There must be some way of revoking permission for the wage assignment.

Posted: Tue Oct 04, 2005 11:40 am Subject:

Tracy, you thought about the other end what lenders can do at the worst. But you should think from this end too. Lack of proper knowledge while signing the contract was evident in your case and that is the reason, the wage assignment took place in your account.

If you have had complete information about the difference between wage assignment and wage deduction, you would have taken correct measures and solved this matter accordingly.

I think if lenders can make rules to oppress the consumers, then consumers can also educate themselves to the peak to fight against these laid situations.

Tracy, it's just my opinion to you. Please don't take it the other way. Not everyone comes learned right from the birth. You have learned a lot from your previous times in this forum and from somewhere else also. Remember, that each day is a learning day and each day we get new ways to fight against the bad things.

Tracy · Posted: Tue Oct 04, 2005 12:35 pm Subject:

I guess I should have retained a lawyer to explain the contract to me before I signed it. The statement is vague at best and does not clearly say that by signing the contract that you are agreeing to a wage assignment.

From what I am gathering, since this statement does exist in the contract that I and others like me have signed, Sonic Payday has every right to wage assignment.

Posted: Tue Oct 04, 2005 1:56 pm Subject:

I fear it might be the case since they can strongly prove that they mentioned about wage assignment in the contract.

Shbear · Posted: Tue Oct 04, 2005 2:08 pm Subject: Sonic Payday

If you live in Texas, Sonic cannot garnish or do anything with the wage assignment. I was told that specifically by Sonic's Collection Agency.

Posted: Tue Oct 04, 2005 3:29 pm Subject:

thanks Shbear for bringing that point. There are specific state laws for wage garnishment or wage assignment to legally put into action.

Wage assignments are usually not put by the creditors because it is more risky to them only. It happened so in 1984 when FTC passed a rule that the creditor has to mention in the wage assignment deed that it can be revoked anytime by the consumer. Thus, the consumer has the positive chance to cancel or rescind the wage assignment during the process. A letter has to be sent to the creditor mentioning that the wage assignment is revoked. Thus, the creditors rarely use this weapon because it can hurt them only in the long run.

Also, not to forget that if a wage assignment has not been written in the perfect revocation language, it is federal as well as a state violation of the law. Thus, the consumer can easily revoke it if it does not meet the terms. Thus, you can put a stop to any collection from your employer. So, consult your attorney is you have entered a wage assignment

Regards
Roxette

Posted: Tue Oct 04, 2005 8:38 pm Subject:

Knee

First of all, wage assignments are totally voluntary. You can take it back at anytime. And second---wage assignments have to be SIGNED in person. Did you sign the paper and fax it back to them? Or is there just a stamp (typed name) and your social security number? None the less...you have to be there in person (and that witness on the wage assignment sheet has to sign in person).

Please make your payroll department aware that you took back your wage assignment and you revoking Sonic and E-Care Centres from assigning anything to your wages. Please also make sure they are fully aware of the wage assignment laws and that the form has to be signed in person.

Forceable wage assignments were done away with by the FTC in 1984.

Hope this helps!

Regards-
Mike

Posted: Wed Oct 05, 2005 5:17 am Subject: Wage Assignment

I have looked over the "wage assignment". I did not sign it in person. Everything was done online at the time I applied for the loan, however there is a handwritten scribble where my signature is to be. They will not allow it to be taken in payments either. The wage assignment states it is to be one lump sum payment which would mean I would need to go without a check for one week in order to allow this to take place. I am going to fax it to my attorney and have him look at it before anything else happens. I understand in Florida there are laws regarding how much of the disposable income can be taken at a time. So I will discuss with my attorney this as well. I honestly don't remember the wage assignment being there when I signed the forms to get the loan.

Posted: Wed Oct 05, 2005 5:43 am Subject:

knee

In the meantime fax them a letter (to Sonic) telling them you are revoking the wage assignment.

The fax number should be somewhere in this thread and it can go to Ms. Shandra. She's a supervisor over the supervisors.

If it is not your signature, then your payroll department does not have to honor it. They'll compare the signatures.

With my wage assignment, all that was present was my ssn# and my typed name.

From what I have gathered from resources, a wage assignment has to be signed in person. I'm not sure if payday loans are exempt from this rule, however speaking with your attorney will help.

Regards-
Mike

Posted: Wed Oct 05, 2005 8:43 am Subject: Sonic Garnishment

I spoke to my attorney and faxed him the garnishment. He said that since it is not my signature on the sheet (It states that it is a digital signature) and since I did not sign it in front of the witness, my employer does not need to honor it. He said that I can send SONIC a certified letter requesting that a payment plan be worked out and that I do not want my employer to honor the wage assignment.
Thanks for all of the input. Hopefully I can get this sorted out.