Wage Assignment - Sonic Payday

A friend of mine has a huge problem. She has a loan with Sonic Payday. A company I am well familiar with. She stopped pay on her loan of $600.00 and she sent a letter revoking any wage assignment, filed a complaint with the DFI of Arizona and the Attorney General's office. The problem is that she sent the revocation by e-mail to Sonic Payday and did not fax it to them. She cannot find the e-mail but has notes where she spoke with a collection coordinator with E-Care Service who advised her that she did not have a wage assingment on file for her. In any event, she called me this afternoon to advise that Sonic sent a wage assignment to her employer but for only half of the debit. The company usually does several debits each payday. Question, since the wage assignment was for only half of the 600 she owed, she spoke with her administrator and the administrator told her that she will most likely not honor the wage assignment but encouraged her to send another letter to the company, this time by facsimile revoking any wage assignments she may have agreed to, just in case Sonic sends another wage assingment for the remainder of the loan. My question is, when they sent the wage assignment for only half of what she owes, does that mean she still can revoke the wage assignment for the remaining amount. She is a littled confused and my issue with this company was resolved without any issues. So I turn to the forum for advice. Thanks.

So, she revoked any wage assignment; however, she only emailed it, correct? Did she not keep a copy of the letter? Actually, she should have emailed it/faxed it/and mailed it certified. However, that's not an issue since we've passed that point now. She did not keep a printed copy of the email though? Now, they sent a wage assignment for 1/2 the amount. Odd. Maybe they are "settling" for 1/2 the debt. However, her employer is aware that this wage assignment is totally voluntary, correct? They do not have to honor it. Especially since it is an illegal company. Now, I would personally (if I were your friend) send a letter revoking any wage assignment signed - period. I wouldn't state "any further wage assignments" or anything like that at all. Just the revoke wage assignment letter. Email it/fax it/mail it certified to them. And make sure this time to keep a copy and give a copy to her employer. I understand one has already reached her employer, and I'm praying to God they do not honor it. However, if I were her, I would send another letter revoking it. Total. The whole deal. Just the simple "I revoke any wage assignment I may have signed with your company, your partners, and any affiliates." I'm sorry she didn't keep a hard copy. And, I'm also sorry they're doing this to her. Been there, done that. Ask her to just send another letter stating total revoke. And please tell me that her employer is not going to honor it!

Sends shivers down my spine everytime I read about someone getting hit with a wage assignment. I hope her employer doesn't honor it.

Who you telling?!? Lordy, Lordy, Lordy.........

Her employer is the same as mine. We both work for a law firm. From what I understand, the Firm Administrator is not going to honor the wage assignment for 1/2 of the debt which she received by fax today from Sonic Payday. According to my friend, the administrator is the one who advised her to send another e-mail and fax a copy of it to Sonic indicating that she had previously revoked this wage assignment and is once again revoking any wage assignment. My friend cannot find a copy of the e-mail in her records but she did inform the Administrator of this situation before the wage assignment came in so she was aware of it. I guess she will know tomorrow if the company will honor the wage assignment. My guess is that they are not going to honor it but wont' know for sure until tomorrow. As for the 1/2 amount, I am a little confused about that. Evidently, our firm administrator contacted Sonic Payday and they advised that they had sent two Wage assignments with that fax but only one was received so the administrator is only working off of one wage assignment.

Let us know what happens.

ctr, odd that they sent two separate wage assignments. When I was slapped with one, it was for the full amount of the loan PLUS some. They didn't send two separate ones. Hell, they just sent one BIG one. Please keep us updated as to the status of this. Your administrator sounds like they know what's going on. Good for your friend for bringing it to their attention before the wage assignment was sent. Please keep us updated.

ctr-What state are you in? There are certain steps, per state, that need to be fulfilled in order to make the wage assignment valid by law even if
there is a shadow of a doubt that you and your friends employer might consider honoring it.

Yes, as Volley said, there are specific laws pertaining to wage assignments. Most pdl's don't follow these laws when doing a wage assignment. Especially since you work for a lawyer, I think being able to show them a law in black and white may help stop them from possibly taking this money.

Arizona is the State

According to our HR department head, they will most likely not honor their request. My friend was concerned that they sent one to them and she never signed a wage assignment with this company. However, when she met with our HR head, they showed her a Wage assignment she signed back in 2004 to coastline credit but since then northway is the new company for sonic is my understanding. As I did not have this issue with sonic and was able to resolve my situation, i am not familiar with what she has to do. I think our lawfirm will help her out and not honor it. She does have a complaint on file with teh AG's office and the Arizona DFI who advised that since they are not licensed in arizona, she has not obligation to pay any of the amount borrowed back. In any event, with the fees she has been charged, she has paid most if not all of this back to them and then some.

Holy crap! This is a wage assignment from 2004, which was for a different company name? How the hell long does a "wage assignment" last for? Forever? And how about it being under a different name? Even if Sonic/Cash Transfer/whoever is now the company name? Does this make a difference whatsoever? Since the wage assignment was for a different company name? I mean, can Cash Transfer Centers come to me 3 years from now (again) and send a wage assignment from 2007 under a different name? What's up with this?

That is my questions. Evidently Coastline used to be the parent company of Sonic Payday when they were located in the Republic of Ireland. Since then Coastline has ceased to exist and Northway Credit Corp. is now the parent company of Sonic Payday and they are out of the Republic of Malta. Go figure. What is even worse is that according to my friend, when she spoke with E-Credit Services, the gal she spoke with assured her that they did not have a wage assignment for her, which would make sense. Since the wage assingment was in 2004 and for another company. She cannot for the life of her find that e-mail she sent to Sonic.....but she knows that she sent one and I know she sent one because I helped her compose it.

The only stuff I can find right now about wage assignments for Arizona have to do with child support . . . Not much help here!

I'm glad your employer isn't going to go through with it!

Thanks Goudah. That is all I could find with regards to wage assignements in Arizona as well. From what i can gather, Arizona, other than child support wage assignments, requires a order of garnishment first before wages can be taken from your paycheck but we are checking on that issue.

From what I understand, our HR director has advised my friend that they most likely will not go through with it but she has not been given a definite answer on this one as of yet. I'm sure they won't go through with it. In any event, I thought it was odd that they wage assignment was for only half of what she owed them. Is that normal? I would of thought it would be for the full amount! In any event, she did sent another letter yesterday afternoon to Sonic via e-mail and facsimile addressing that she had previously revoked any wage assignment she may have agreed to when she took our her loan. I believe that if the other half of the wage assignment is sent today that should take care of it right? I'm not sure as my issue with Sonic was resolved without this issue happening. Any advice I can pass on to her would be greatly appreciated.

If your friend sent out another letter addressed to the "correct" company name and just state revoking any wage assignment, that should cover it. I'm just totally amazed that they sent this 3 year old wage assignment with a different company name to try to take money from her now. Plus the fact that the amount is incorrect. These factors alone should make your employer step back and say "Hold on. Now how legal could this possibly be?" To me, this isn't even worth them getting "approval" on. It should go in the garbage. 3 year old signed document for a voluntary wage assignment, incorrect loan amount, and different company name. Now, honestly, does this spell LEGAL to you???