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Posted: Fri Sep 14, 2007 6:22 am Subject: Wage Assignments on an illegal loan??

Sorry guys, I had to start a new topic regarding this extremely disturbing incident that Cannr is going through.

How in the world can an illegal and unlicensed PDL issue a wage assignment? It just boggles my mind!

I read through all the posts and from what I can gather, a wage assignment is just a piece of paper that they try to pass off on unsuspecting and uninformed employers who will honor it as if it were a garnishment (from the courts). Is this right?

Now I'm really nervous....I know MTE doesn't have wage assignments in their "contracts" but I wonder if they would still try to pull this crap with me. Or even worse, Staradvance out in Costa Rica...Can you imagine???

Posted: Fri Sep 14, 2007 6:53 am Subject:

Wage assignments are a real thing. It's not just pdl's that use them. They are legally valid documents in most states. Some state's have outlawed them. But it isn't just a piece of paper. They are valid and binding, unless you have revoked it before it was sent to your employer. You can't revoke it after the employer recieves it, it is too late at that point to revoke. That's why you have to revoke asap!

The reason most employers will put it through is because you did sign saying that you agreed to let the company do this. Most employers will think it is something you have requested. Or they will think that they have to do it. Some employers will think it is a garnishment, but most should know better because they have seen a real garnishment.

The problem is that most employers don't understand about pdl's. To them, you signed a contract. They don't care so much that the business is illegal. They don't understand about these places. To them, you owe this debt, signed a piece of paper allowing the company to assign your wages, and the employer thinks it's the right thing to do allowing it to go through.

Posted: Fri Sep 14, 2007 6:54 am Subject:

JEN -

the best way to handle any possibility of a wage assignment is to simply revoke ANY wage assignment with ANY payday lender. They may not have one in their "contract", but in order to do a little CYA (cover your...backside), it's a good idea to include a wage assignment revocation in your letter that revokes their ACH authorization on your bank account as well. Cover all the bases at once.

Posted: Fri Sep 14, 2007 7:13 am Subject:

Yep! If you have proof that you revoked the assignment well before the company tried to use it, then there is little your employer can do! If they still put it through anyways then they are breaking the law and will end up having to pay you back.

Posted: Fri Sep 14, 2007 8:55 am Subject:

Goudah, I love your hearts.I agree, I believe in revoking any and everything. I do cover all my bases. So far , I have not been blessed with any wage garnishments. I think its because I switched jobs, and only 2 know my new work # and of those 1 got a pif on.Yje other one is the famous PDL in the Grenadines, so i dont put anything past them. I will just wait and see

Posted: Fri Sep 14, 2007 10:13 am Subject: reply

I understand this is a "binding agreement", as you stated. However, it is still just a "voluntary" agreement. Correct? The employer does not have to abide by it. They can just say "We do not honor wage assignments." Am I correct here?

Posted: Fri Sep 14, 2007 10:18 am Subject:

Yes, you are correct. It's is up to the employer wether they want to honor it or not. Some employers don't allow voluntary deductions for anything but insurance . . . .

Posted: Fri Sep 14, 2007 10:20 am Subject:

I send out the c & d letters next Thursday..should I incoporate revoking the ability for wage assignment in the initial letter??

Posted: Fri Sep 14, 2007 10:22 am Subject:

...and if it gets to the point where you need to leverage the law, refer to that too. Example-goudah pm'ed me the laws for CA and there are a BUNCH of requirements that need to be met for the wage assignment to be valid EVEN IF my employer wanted to honor it. One of the requirements for california was that if someone was married, the spouse has to have signed it too. YEA RIGHT! Rolling Eyes

Posted: Fri Sep 14, 2007 10:24 am Subject: reply

Thank you (AGAIN!) goudah. You know I need things s-p-e-l-l-e-d out for me! I just wanted to make sure what I did was enough. It is. And, volley, goudah posted some good stuff that was included in the fax to Cash Transfer Centers. Nice "legal" stuff! Very Happy

Posted: Fri Sep 14, 2007 10:24 am Subject:

LMK - Yes, just state in the letter:

Posted: Fri Sep 14, 2007 10:28 am Subject:

LMK, Either that or do a specific letter and include it. If it is not too much trouble I would add that to the initial letter. Fewer pages for them to loose. I simply spoke to my HRM and explained the situation - emailed her one with allthe pdl names listed on it she sid she would ocntact me if anything came in. I also emailed all the letters to my bank when I closed my account. She has them all filed as well. I only sent one letter with everything I wanted to say including the revocation clause. Roxy

Posted: Fri Sep 14, 2007 10:39 am Subject:

I'm lucky - In Oregon wage assignment are illegal! They are also illegal in Florida, and I'm sure a bunch of other states. You just have to figure out where to look in the laws to find it.

Posted: Fri Sep 14, 2007 10:40 am Subject:

Got it! May as well revoke everything all at once! You all are wonderful...love ya guys!!! Wink

Posted: Fri Sep 14, 2007 10:41 am Subject:

And that is easier said than done for some of us...I for the life of me can not wrap my brain around some of the legal verbage...thus, a big thanks for the new thread on state laws you have started.

Posted: Fri Sep 14, 2007 10:43 am Subject:

Yeah, they can be very hard to understand. Plus, a lot of the time you don't know if you are interpreting them correctly! That's why I wanted to include emails from the DFI's of each state so we know we are interpreting them right.

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