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Need your help on this topic...

I have an installment loan thru a storefront here in Illinois. It has defaulted and gone to their "in-house" collections.

My question is this...are they breaking any laws by doing the following...

1. I was late (2 hours) in getting to the store to make payment (prior to default) and they called my landlord (reference).

2. They sent the wage assignment to my employer without following due process (they must send me a copy of intent via certified mail). I received nothing.

3. Yesterday, I received a vm saying if I didn't call him by 5 pm he was going to turn this over to the DA and have a bench warrant issued.

I now know all the problems of using PDL's and am working on getting out of the trap...just need assistance on this topic.

Thanks for your help!

Posted: Wed Jul 16, 2008 11:18 am Subject: reply

i know one thing,save that v-mail.they can't have a bench warrant issued.sending you an v-mail stating the DA would do
that suprises me.they are supposed CFSA members.i would PM
finsfan about the wage assignment,that is her field,but an AG
complaint might be in order as those actions are not legal.

Posted: Wed Jul 16, 2008 11:20 am Subject:

Paul, it was a voice mail. I got my trusty recorder out and recorded the voice message so I have proof to give to an attorney if I have to. (Sometimes vm drops off after x amount of days.)

Posted: Wed Jul 16, 2008 11:25 am Subject: reply

great,now if you PM finsfan she can guide you as far as the
pushing the wage assignment through without your knowledge.
again these are not legal actions.

Posted: Wed Jul 16, 2008 11:27 am Subject:

You also need to file a complaint with the CFSA.

Posted: Wed Jul 16, 2008 11:38 am Subject:

This may sound like stupid questions, but...

1. Can they call my landlord who they require to be a reference?

2. Are they allowed to turn the matter over to the DA?

Posted: Wed Jul 16, 2008 11:53 am Subject: reply

they can't turn it over to the DA that's for sure.debts are civil
matters,not criminal ones.they actually required them for a
reference.the landlord i mean.that's ridiculous.

Posted: Wed Jul 16, 2008 11:58 am Subject:

The collector said in his vm, "that apparently I took the money and ran" and that is stealing. Since my checks bounced, that is fraud and the DA will handle this.

I'm trying to find hard evidence that what they did (as listed in the OP above) was improper and could use to possible sue them.

Any ideas?

Posted: Wed Jul 16, 2008 12:02 pm Subject: reply

bottom line,if you made even one payment they would need alot
to prove fraud.i heard about this place,stupid and will break the
law to try and collect when someone defaults.

Posted: Wed Jul 16, 2008 12:11 pm Subject:

I made many payments before default. It just seems that they don't have their act together.

Posted: Wed Jul 16, 2008 12:16 pm Subject: reply

exactly,accussing of,taking the money and running is stupid
and preposterous.

Posted: Wed Jul 16, 2008 12:20 pm Subject:

Under the state info for Illinois it says that criminal action is prohibited.
As far as the Wage assignment that is completly different from a Wage garnishment. All you have to do is send a letter to the company that you revoke their right to a wage assignment and also give a copy to your payroll department. Once you revoke the wage assignment its void.

Posted: Wed Jul 16, 2008 12:49 pm Subject:

Yes, the assignment is voidable by revocation.

I did that with the payroll dept, but since they (PDL) did not follow the IL law for due process of wage assignment, can I sue them for that.

Posted: Wed Jul 16, 2008 1:22 pm Subject:

I'm not sure what the rules are as far as Wage Assigntment to an employer..I don't think it's as strict as a notice for Wage Garnishment. I was dealing with a company here in Illinois as well and they sent a Wage Assignment to me regular mail and to my employer regular mail. Fortunatly the mail came to my office and not the office of the payroll person so I was able to intercept it. They actually sent this after I revoked claiming they never received it. So I had to send it again Certified mail with return receipt.

Posted: Wed Jul 16, 2008 1:35 pm Subject:

Service of a Demand on an Employer for the Wages of the Employee
A demand on an employer for the wages of the employee by virtue of a wage assignment is properly served if:

-the employee has defaulted on the debt secured by the assignment for more than 40 days and the default has continued to the date of the demand;
-the demand contains a correct statement of the amount the employee is in default and an original or a photo copy of the assignment is provided to the employer; and
-not less than 20 days before serving the demand, a notice of intention to make the demand has been served on the employee, with a copy to the employer, by registered or certified mail.

The above is from the Illinois Wage Assignment Act.

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