payday loan wage assignment please help!!!!

I got a payday loan from PLS (payday loan store) in waukegan on grand ave for 800. Well they made it into 2 loans which made it impossible to pay because it was like I was getting charged way more... I sent them a letter t to tell them a bad situation got worse and I couldn't pay them the full amt and could we come up with a payment plan.. They never got back to me.. Just last week they sent in my checks and needless to say they bounced.. Now they have sent a wage assignment to my employer who said I had to take care of it within 2 weeks or by law they have to garnish me.... I don't know what to do... We have currently fell on realllly hard times, we lost our apartment in sept, took the loan out at the end of nov in order to try and get another place (we have been living in a hotel room since sept, which is extremely expensive but we have no money to save and nowhere to go in the mean time) we thought we were going to get approved for an apartment who had a move in special we got denied ( bad credit) and had to pay for the hotel ( currently 300 a week).. I dont know what to do.. I don't want them to take money out of my check like that, I'd rather set up a payment plan that I can afford, which is not much...what can I do?? I'm very lost i dont know anything about any of this, it was a dumb thing but i cant change it now....please help!!!! any advice or knowledge that soemone knows can you please tell me what i can do to prevent anything else horrible from happening.. im tired of taking one step forward and 10 back!!!! please help!!!!

The Federal Credit Practices Rule (16 CFR 444.2) provides that wage assignments must be revocable at the will of the debtor.

This means you can simply revoke your wage assignment, and then they cannot use it. Write them a letter stating that you hereby revoke your wage assignment, send it certifed RRR.

However, that will likely make them mad. Since they are a storefront (presumably licensed), they might end up filing a lawsuit if you don't make acceptable arrangements to them. Once you revoke the wage, you will be best to call them again (the ball will be back in your court, for the time being), explain the situation, and now they might work up a different plan for you.

One more thing...Make sure you give a copy of this letter to your HR dept. It's very important that they get this right away, it's all about your money!! Wage assignments suck, because there is no cap.

They actually left me a message to give them a call so I'm going to do that tomorrow... Hopefully all will go well... What do I need to say in the letter exactly?... What will happen if they do put a lawsuit on me?... I can't believe all this is really happening... the age old saying, 'if I knew then what I know now..' ahh... life is a learning process... thank you for all of your help, you have no idea how much of a calm it gives me to know that I'm not the only one it happens to and others are willing to help you with their advice and experiences....for free....lol... Once again, thank you!

The letter can be very simple, you don't need to go into long detail.

I'd say to quote the law just so they know that you know what you're talking about. My letter would go something like this:
[quote]On XX/XX/XXXX I received your notice of intent to assign my wages. You should know that the Federal Credit Practices Rule (16 CFR 444.2) governs your use of wage assignments and provides that I may revoke it at my own will.

Accordingly, notice is hereby given that I revoke the wage assignment I executed on (insert the date you took out the loan).

Like Fins said, give a copy to your HR or payroll so that they know you revoked it.

I didn't mean to scare you by mentioning lawsuit. Although that is a possibility, creditors will only do that as a last resort. They would most likely only file a lawsuit if you sent this revocation and then never paid anything again.

Believe me, they want it to be paid off without going to court just as much as you do. The revocation just lets them know you're going to do it on your terms. If you contact them and make some sort of payments, I think you will be safe. Ask for a manager, explain your situation, let them know you're not just refusing to pay, but need a little more time.

We have all been there sometime or another, and it is indeed a learning process. Let us know how it goes.

I just typed out the letter. I'm going to mail it off tomorrow and give the other copy directly to my HR department. I haven't spoken with them yet but I will let you know as soon as I do. Thank you very much! I was really losing my mind until I came upon this site! I'm sure I can figure out a solution to my other financial woes thru this site as well. Once again thank you from the bottom of my heart! I will keep you posted! no pun intended!!

I have a question. Can suchalady revoke her authorization of wage assignment AFTER her employer has already received it? I thought one had to revoke the wage assignment BEFORE it was received by the employer?

Wage Assignments are voluntary and are not executed through a court judgement like a garnishment..the HR Dept can choose to refuse to honor it whether someone revokes it or not...Of course, the earliest communication with HR is the best way to go but as far as I know there isnt a hard and fast rule about HR having to have your revokation letter before the PDl sends the wage assignment. Its up to HR how they would want to handle.

I agree with volleyballmom. A company can receive a wage assignment and throw it in the garbage if they wanted to - they are not required by law to act on it.

Looking to the law I quoted above, it doesn't say that a debtor has to revoke it within some time-frame; it just says that wage assignments must be revocable. I would think that if an employer receives a revocation, then they would take the safe route and halt the wage assignment -- lest they might open themselves up to liability and lawsuits from the employee.

Also since Suchalady is in IL -- IL has specific laws regarding wage assignments. The creditor has to provide a Notice of Intent, which give the debtor 20 days notice that they intend to use the wage assignment. Along with the Intent, they have to provide a blank Affidavit of Defense that the debtor can fill out and send to the employer. If the employee fills out that defense form, then the creditor cannot proceed with the wage assignment.

Just reading this. Very interesting. Thanks for the clarification! I'm sure it'll help a lot of people who are getting wage assignments thrown at them!

Do u have to have a defense to revoke?

A defense isn't necessary, anyone can revoke at any time, because they want too.

Thanks for answering so fast. I just got a Wage Assignment notice from PLS Payday Loan Store in Chicago. I already called my payroll. It is a very large company and payroll advised they do not acknowledge anything without a court order. I will send my revocation letter RRR along with a payment and request for installment payments.

I have a loan with Advance America in Illinois and I sent them a letter to revoke my wage assignment. The office there told me I could not revoke until AFTER they send my employer a Notice of Intent. That is contrary to what is listed above. I'm so confused and don't know what to do! Help!

It's a voluntary wage assignment. You should be able to revoke it at any time. Make sure that your employer has a copy of your revocation so that if Advance America does send anything to them, they won't honor it.

Can you revoke a wage assignment from a store in your state? My understanding is that the FTC rule only applies to interstate credit transactions and that your rights in an INTRAstate transaction are governed by your state's laws. A lot of states prohibit wage assignments in any payday loan transaction, so I suggest you look there to see if you have the right to revoke.