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Posted: Mon Nov 14, 2005 3:42 pm Subject: Sonic Payday--Wage Assignment Process

What is the process that Sonic Payday takes to assign a wage assignment? Will someone notify me that this is being done or will it just be done? Also does anyone have a sample letter revoking the wage assignment?

Thanks
Kathy

Posted: Mon Nov 14, 2005 4:31 pm Subject:

Sonic payday states about the possibilities of wage assignment in the loan agreement. When you have signed this paper, you have agreed to their terms and conditions if you default in making payment to them.

In these voluntary wage assignments, your employer will be demanded a portion of your weekly wages until the existing debt gets paid off. The whole process does not require any backing from the court. Those creditors who issue a valid wage assignment does not have to obtain a court judgment before your employer is notified.

A wage assignment is termed legal if it fulfils the following requirements:

Wage assignment should be served on a separate piece of paper and should not be a part of the contract.
You need to sign this paper in person at the time of the agreement with your social security number, your name, the amount of the debt, the rate of interest, and the date when payments are due.
A copy of this agreement should be available to you also.
Wage assignment should be clearly written at the top of this document.
It should be served to your employer in the proper way showing the number of days you have defaulted in making payments. A copy of the wage assignment should be included along with it.
The notice to the employer should be sent only after a notice about it has been sent to you. You should receive this notice 20 days before your employer receives it.
This agreement should keep in view the statutes of limitations in your state.
The assignment is valid for 3 years. But in between, if you have changed your employer, then it is valid for 2 years.
The wages assigned should not exceed the allowed amount under the wage deduction act
You cannot have wage assignment if you are earning wages from the State or local government or a school district.

Wage assignment should have the following points clearly stated and should meet the required revocation language. Otherwise it will be a violation of the federal and state laws. If the wage assignment is not meeting the following legal requirement, you need to send a letter to the creditor that you are revoking it.

While you are sending your revocation to the lender, you can also file a "notice of defense" with your employer and send this copy through certified mail. Your employer will be informed about your actions and he won't deduct any of your wages while you have revoked this assignment.

I am trying to locate a perfect wage assignment letter for you in the meantime.

Regards
Roxette

Posted: Mon Nov 14, 2005 4:37 pm Subject:

Kathy

Following letter can be used for revoking a wage assignment.

The date
Your name and address
The name and address of the creditor
Your account number with the creditor

Dear Sir or Madam,

I hereby revoke your right to use the wage assignment I signed on (The date you signed the wage assignment agreement). You no longer have my permission to use this wage assignment.

Sincerely,
Your signature

Posted: Tue Nov 15, 2005 8:15 am Subject:

Kathy

Also, since you didn't sign the wage assignment in person, it is automatically void. Most of the wage assignments they have, aren't even signed and faxed back to them. They just use your SSN# as proof you took out the loan. This will not work.

Regards-
Mike

Summer · Posted: Mon Nov 21, 2005 3:52 pm Subject: Wage Assignment

Are you sure if you didn't sign in person, it is not legally binding?

Posted: Mon Nov 21, 2005 4:46 pm Subject:

Hi Summer,

Welcome to the forums.

A legal wage assignment has to be signed in person before the creditors can take any action. Other points to be specified in a legal wage assignment have been mentioned at the above post.

If you have been served a wage assignment that has been generated from a computer, you have the federal rights to revoke it.

Regards
Roxette

Summer · Posted: Tue Nov 29, 2005 4:55 pm Subject: Sonic payday loan agreement

I am trying to work out a payment plan with them but they went ahead and sent an email to someone in my payroll dept. asking to verify my ssn# (which they included in the email) and notifying them that I owe money. Isn't this illegal. How can I get them to leave me alone at work?

Posted: Wed Nov 30, 2005 1:43 pm Subject:

Hi Summer

Does the SSN# that has been provided to your payroll dept. matches with your one? Most of the companies use the SSN# to prove that you took the loan and are seeking further actions.

Even if it is a voluntary wage assignment, it should be complied with legal requirements. You have the right to revoke it and inform about this action to your payroll dept.

Regards
Roxette

paulaa · Posted: Mon Dec 12, 2005 10:56 am Subject: Sonic payday loan agreement

Is it illegal for them to submit a wage assignment to
my employer that has a digital signature on it and
an amount I did not agree to???

Posted: Mon Dec 12, 2005 11:07 am Subject:

Paula

Welcome to the forums. Yes, technically it is illegal for them to use the wage assignment with a digital signature on it. They claim that the verbal agreement over the phone is all they need, however they only submit the wage assignment to your employer. Wage assignments also have to be signed in person, along with a witness. Sonic does not follow any of the wage assignment laws.

Regards-
Mike

paulaa · Posted: Mon Dec 12, 2005 11:27 am Subject: sonic payday

I would like to confront them with this issue. Do I put it in writting. they are claiming they need an answer today. They also deposited 400.00 that they should not have and when I told them about it they told me they could not reverse it and I would need to pay the fee. So I owe them for 2 loans because they did not pay atttention of the first loan that it had cleared the bank. I did do a re-loan but they never deposited it until the 1st one cleared. Is that just my tough luck??? AHHHHH

Posted: Mon Dec 12, 2005 3:39 pm Subject: I feel for you

paulaa

Yes, put it in writing, certified mail, return reciept requested. If you search here on the fourms (they're is a link on the lower left hand side) you will be able to find am address for Sonic payday as well as many other helpful insights to dealing with payday lenders.
As to the reloan, i'm not sure what you could do as far as that goes. you said you DID reloan, but it sounds like it was thinking that the other one had not initiated or funded?
I know that doesn't help you now. Even if you used the 400 dollars that Sonic is unwilling to reverse - you're looking at a little over 100 dollars just because they don't do cancels! This is a good arguement as to why you should decline any lenders offer to refinance you to get you current, it never brings you current, it only prolongs the situation, all the while you are paying fees that could have gone toward paying down the original amoutn due.

Good luck to you, you are not alone! Smile

Posted: Mon Dec 12, 2005 3:44 pm Subject:

Paulaa

Put every correspondence in writing. Send your letter through certified mail with return receipt requested. You will be able to keep a track of all your information sent to them. If you don't get positive results, you can take some legal help.

The company is trying to put you in deeper financial troubles by giving another loan at this time. Send a letter to the customer care cell and request them to cancel this loan. But this way, they might charge you a pre-closure fee. So, in both ways, you are required to pay the fees.

Regards
Roxette

Tina · Posted: Thu Feb 09, 2006 12:38 pm Subject: Sonic Payday

I have had the same issue with Sonic. They never sent me written notification or did they serve me with anything involving Wage Assignment. My employer however does not honor these wage assignments. What is my course of action?
Sincerely,
Tina

Posted: Thu Feb 09, 2006 12:59 pm Subject:

Tina,

If possible try to pay the amount back and get rid of this problem.

Also inform your payroll department that they might try to withhold a portion of your wage and you did not authorize them to do it.

Go through the thread below to know more about Sonic-

http://www.debtconsolidationcare.com/forums/about3377.html

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