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 Posted: Mon Aug 25, 2008 7:24 am Subject: WAGE ASSIGNMENTS LAWS IN PA...HELP!! |
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I sent an email to my Payroll department, informing them of my payday loan issues, that I am revoking the wage assignments, and they told me that it's too late once I default on the loans. From what I have read, it is voluntary, and can be revokded at anytime...they said they will have to honor the ge assignment if it comes to them. I cannot find any laws anywhere that can help me clarify this...anyone have any suggestions where I can prove this, and send to my payroll department?
Thank you!
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haven228
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| Posted: Mon Aug 25, 2008 10:45 am Subject: |
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The voluntary transfer in advance of a debtor's pay, generally in connection with a particular debt or judg- ment.
A debtor may negotiate with a creditor a wage assignment plan in which a portion of the debtor's paycheck is transferred to the creditor by the employer. This voluntary agreement is in contrast to garnishment, in which a creditor obtains an order from the court to collect part of a debtor's wages from the employer. Both wage assignments and garnishment are governed by statutes in most states.
A wage assignment is similar to an assignment for benefit of creditors, in which the debtor assigns personal property to a trustee. Typically, the trustee sells the property and applies the proceeds to the debt. Any amount in excess of the debt is returned to the debtor.
Since the 1980s wage assignments have become an important method of making child support payments in the United States. In 1984 the federal government required all states to implement child support guidelines for welfare recipients. As time passed, those guidelines were implemented across the board in all cases involving child support. While a wage assignment has typically been viewed as a voluntary act by the assignee, courts now issue wage assignment orders directing employers to withhold child support payments and send the funds to a designated recipient such as a custodial parent, the court, or a state agency.
Although the paying parent may be a responsible individual who would never miss a payment, and the recipient parent may honestly report all payments received, the wage assignment eliminates potential conflict by using a neutral third party to implement the paying and reporting of payments. Employers generally do not impute bad character to an employee paying child support through a wage assignment, and the courts routinely issue orders without finding fault. Wage assignment orders are appropriate for salaried employees but do not work effectively for self-employed individuals or people in cash businesses.
A wage assignment may also be used when an employee obtains a loan from his employer and wants to repay the loan by having the employer withhold money from future paychecks. An employer who lends an employee a sum of money cannot take it out of the employee's next paycheck without a proper, written, notarized assignment from the employee. State statutes require that legal formalities be followed, or the withholding of money can be considered an unlawful assignment of wages.
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danilewis82
Joined: 05 Aug 2008
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| Posted: Mon Aug 25, 2008 11:03 am Subject: |
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Thanks...although I'm not really sure what this means? My payroll department said that once I defaulted on the loan, I cannot revoke the wage assignment. They will proceed with the request from CTC, or any company that send the paperwork in...this is the opposite of what is being discussed on the boards. Are the laws different in each state?
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haven228
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| Posted: Mon Aug 25, 2008 11:11 am Subject: |
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Legal Status: Prohibited
Citation:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, § 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. § 6201 et seq.
Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year
Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser Administrator of Non-Depository Institutions
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danilewis82
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| Posted: Mon Aug 25, 2008 11:13 am Subject: |
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it clearly states in black and white that payday loans are prohibited in your state, i would send a copy of this to your hr dept, some people don't know how these things work, and in that case should not even be in that field(i hate that) in any case, call the number listed above and tell them of your situation.
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danilewis82
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| Posted: Mon Aug 25, 2008 11:24 am Subject: |
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Payday loans are legal in PA..as long as the company is licensed in their(the companies) homestate, they are legal in PA.
That above just prohibits check cashers etc...see the citation
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| Posted: Mon Aug 25, 2008 11:26 am Subject: |
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befor any companies try to wage assignments, try to do payment plans with them! Good luck! IN PA you will have to pay them back (the payday loans)
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Shazzers
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| Posted: Tue Aug 26, 2008 5:32 am Subject: |
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payday loans are LEGAL in PA if that company doesnt have an entity in PA.
they can only revoke wages by court order in PA
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| Posted: Tue Aug 26, 2008 5:55 am Subject: |
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http://www.ofm.wa.gov/policy/25.60.htm
| Quote: | 25.60.30.a
Wage assignments overview
There are generally two types of wage assignments – voluntary wage assignments and mandatory wage assignments. A voluntary wage assignment is an employee’s written consent to transfer future wages to a third party (assignee). Wage assignments are generally only for a part of the employee’s wages. A mandatory wage assignment is a similar transfer of earnings required by law or court order. The amount deducted under the wage assignment can exceed the 25 percent limit of a writ of garnishment.
25.60.30.b
Voluntary wage assignment
Agencies may accept or decline to honor a voluntary wage assignment. However, honoring a voluntary wage assignment may forestall a garnishment, which results in significantly more work for an agency. An agency accepting a wage assignment should notify the employee and the assignee that the agency’s acceptance is conditioned on (1) the agency not being liable for mistakes or omissions in honoring the assignment and (2) that enforced wage collections (e.g., garnishments) will take precedence over the assignment.
Before honoring such an assignment, the agency should obtain a copy of the assignment signed by the employee. If the employee is married, written consent to the assignment by the employee’s spouse is also necessary for non-child support debts.
25.60.30.c
Mandatory wage assignments
A mandatory wage assignment most often requires the transfer of earnings based upon a court order or agency directive. The legislature provided for the mandatory assignment of wages for child support, criminal financial obligations and public assistance overpayments. A mandatory wage assignment should be processed in accordance with the terms of the assignment or court order. Continue to withhold earnings until the debt is paid in full unless the assignment states otherwise.
25.60.30.d
Priority of wage assignments
A mandatory wage assignment, garnishment, or other legally established involuntary debt collection mechanism ordinarily takes precedence over a voluntary wage assignment. An agency should consult with its assigned Assistant Attorney General to resolve questions that may arise concerning these wage transfers. |
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Shazzers
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| Posted: Tue Aug 26, 2008 6:53 am Subject: |
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That is Washington law posted above . . . . Not PA law. It would not apply to this situation at all.
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goudah2424
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| Posted: Tue Aug 26, 2008 7:06 am Subject: |
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| Quote: | Unconsolidated Pennsylvania Statutes
LABOR (TITLE 43)
ASSIGNMENT OF WAGES
43 P.S. § 271. Assignment of future wages: payment in money
No assignment of future wages payable semi-monthly, under the provisions of this act, shall be valid, nor shall any agreement be valid that relieves the said firms, individuals, corporations or associations from the obligation to pay semi-monthly, and in the lawful money of the United States.
43 P.S. § 272. Action for violation of act
It is hereby made the duty of the factory inspector and his deputies to bring actions in the name of the commonwealth against every individual, firm, corporation and association violating the provisions of this law, upon the request of any citizen of this commonwealth. Upon his failure to do so, any citizen of this commonwealth is hereby authorized to do so in the name of the commonwealth.
43 P.S. § 273. Assignment of future wages to secure loans; acceptance by employer
No assignment of or order for, wages or salary to be earned in the future, to secure a loan, shall be valid against the employer of the person making said assignment or order, unless said assignment or order is accepted, in writing, by the employer.
43 P.S. § 274. Consent of wtfe to assignment
No such assignment of, or order for, wages or salary to be earned in the future, to secure a loan, shall be valid, when made by a married man, unless the written consent of his wife to the making of such assignment or order is attached thereto before any such assignment or order is accepted, in writing, by the employer, as provided in the first section of this act. |
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goudah2424
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| Posted: Tue Aug 26, 2008 7:08 am Subject: |
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In Pennsylvania, wage assignments are legal, but if you are married your spouse must sign the assignment too in order for it to be valid.
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goudah2424
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| Posted: Tue Aug 26, 2008 8:25 am Subject: |
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WHAT?????
Are there any of states which this law stands? I am in Washington DC
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| Posted: Tue Aug 26, 2008 8:26 am Subject: |
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So I cannot revoke any wage assignments? My company has to honor them?
Thanks everyone for the responses!
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| Posted: Tue Aug 26, 2008 9:19 am Subject: |
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goudah posted that the wage assisgnment has to be signed by your spouse also, so when you apply for the payday loan your spouse has to also sign the wage assingment. so if they didn't then the payday loan company cannot go after your wages b/c the assignment is not legal. Right?
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guestinPA
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