The Truth and Law about "Voluntary Wage Assignments&

This will help all with regards to "Voluntary Wage Assignments"

www.ftc.gov/bcp/conline/pubs/credit/crdtrul.shtm

Thanks for that info! I bookmarked it for future reference!
Again thanks,
Ang

A good read that everyone should be aware of.

Here is the text of the page for archiving on our site.



http://www.ftc.gov/bcp/conline/pubs/credit/crdtrul.shtm

This is very good to know, thank you PDLInvestigator

That doesn't really mean much - It just says that a contract can't have a wage assignment provision unless it can be revoked, which is the whole point of a voluntary wage assignment . . . . .

Goudah,

I do respect you are the moderator, but I have to disagree with your comment. They do mean a lot if you are inquiring about how Voluntary Wage Assignment work. I work for a law firm that fight these assignments from PDL (store-front in Canada). We, on a daily basis, get calls from consumers in the States asking about assignments and how they can be revoked. Assignments can be revoked both by fax, mail (Certified and/or Registered). If the PDL sends this request to an employer, the law in Canada states that the employee must be notified that a request has come through about a Voluntary Wage Assignment. All the employee has to do is tell the employer that the matter has been looked after and to disregard the assignment because the copy that is sent to the employer is invalid because the debtor did sign the assignment in person.

A PDL cannot use "Voluntary wage assignment" are not allowed because of these things:

1. They must be signed in person in front of the creditor; Which they are not

2. You can revoke them at any time;

3. Electronic wage of assignments are not valid Checked with the Federal Trade Commission and it was confirmed September 21, 2007

Great information. We appreciate every ounce of new info here.

I, also, like Anthony think this is very good and helpful information. Actually, i'd like to reinterate a story to u from a lady here on our forums... She has found herself in the pdl trap and finally found this site... after defaulting on one they sent a wage assignment to her HR dept. The HR head was an atty and told her that she HAD to honor this assignment as it is the law!! She tried her best to fight the HR lady but last i heard to NO avail... Last i know of they are indeed garnishing her wages with NO court order cuz of this hr lady!! So my personal opinion is this information cud help her tremendously!
And if u have any opinions to offer on this case plz do and i will let her know to check this out!
Thanks again,
Ang

I'm sorry, I didn't mean that as it sounded . . . I was having a bad day at work and wasn't reading what I typed before I posted. My apologies . . .

I just meant to say that this information was already on the site about wage assignments - The excerpt Cajun posted only mentioned the fact that they must be voluntary. There are a few more requirements for wage assignments too that are never followed. Like if you are married your spouse must sign consent too.

The problem is that most HR people don't know this. Most wage assignments are put through because of uneducated HR people. That is what the pdl's depend on. They make "offical" looking documents are trick employers into paying up. Just like these pdl's don't follow the laws on other matters, they don't follow the laws on these. I know of several occasions where even when state law specifically stated wage assignments weren't allowed, an employer still put it though. That is the biggest hurdle with wage assignments.

Here is a curveball for yall to think about.If a illegal company sends a assignment and you have already notified said company and your employer of this information,would not employer be on hook for processing this document without some sort of due diligence on their part. This ought to spark some legal debate.

I agree - I know of one person in my state, where they are flat out illegal, who had their employer honor the assignment. The labor dept got involved, and the employer had to refund the money. And you know they aren't going to be getting that money back from the pdl, so in essense the employer ended up paying the payday loan.

If you had already notified your employer of your revocation, and they still honored the assignment, they would absolutely be responsible. Now, if you hadn't notified the employer before hand, they may have some wiggle room, depending on your state law. Some state's do not require the employer to notify the employee, since it's voluntary it's assumed the employee is aware of it already.

Hummm... well Kate outta love this thread! SHe definately let her HR dept know that she had revoked the wage assignment, yet teh atty hr head said it was indeed legal! She tired arguing and arguing with her but last i spoke to her they were gonna start garnishing her next check. That was about a month or so ago!
I'll pass this on to her.
Thanks guys,
Ang

Attorney in HR needs a new job because an assignment is voluntary and not required to comply.Whereas a garnishment is mandatory and you are sol if you catch my drift.

Well i will definately send her to this thread soon as i can!
And i got ur drift cajun!

Ang