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Posted: Wed Jan 31, 2007 4:27 am Subject: consolidation & garnishment?

If I was to enroll in a debt consolidation program would Americash & All Credit Lenders still be able to garnish my wages? I did send the Letters of Revocation re: Wage Garnishment via certified mail, and gave copies to my payroll (I also told them not to Garnish my Wages without court order. But these two companies are liscensed to do these types of installment loans in Illinois, and these loans offer little or no protection under the PLRA. If they start wacking my paycheck I'm in big trouble. Any advice?

Posted: Wed Jan 31, 2007 8:46 am Subject:

Do you mean wage assignment? A wage garnishment is a court order. If you did revoke the wage assignment they would not be able to assign your wages. But if they are legally licensed in your state their next step may be to take you to court. I would try to work something out with them. Most law abiding storefronts will work out payment arrangements with you.

Some debt consolidation programs won't work with pdls, and some pdls won't work with debt consolidation programs. I would make sure all companies will work together if you go that route.

Posted: Wed Jan 31, 2007 12:39 pm Subject:

Legally they CAN still civilly sue you (as long as they are licensed) even in a consolidation program.

I really wouldn't worry too much about it, though..as long as they are getting paid they really have no basis to sue you. And as far as an assignment..As long as you gave your payroll dept a letter of defense against them you have it covered.

Posted: Wed Jan 31, 2007 12:44 pm Subject:

I was told that even if a company isn't licensed they could still technically sue you, since anyone can sue anybody. But your defense would be they aren't legally licensed in your state, and the courts would look into that, and the pdl would be fined for doing business without a license. most pdl's know this, so they wouldn't risk sueing someone.

Posted: Wed Jan 31, 2007 12:51 pm Subject:

Yeah, they could attempt to sue, that's true..But they would never get a judgement if they are illegal. Just make sure if it ever comes to that you show up in court.

Posted: Wed Jan 31, 2007 1:06 pm Subject:

Yes, because if you didn't show up in court then an automatic judgement against you could be entered and your wages could be garnished legally . . . . But that's a long shot, I don't think anyone on this board has ever been sued by a PDL that wasn't licensed legally in their state.

Posted: Wed Jan 31, 2007 1:08 pm Subject:

No I don't think so either..

The only way I could logically think that would happen is if the PDL debt was sent to a collection agency, and the collection agency was licensed. They could then sue for a judgement. But..As long as there are payments being made it just won't happen.

Posted: Wed Jan 31, 2007 1:26 pm Subject:

Since the original poster said the companies they are dealing with are licensed in their state they could be sued . . . You really need to contact the companies and see if you can set up some payment arrangements. I agree with finsfan, as long as regular payments are being made, you aren't going to get sued.

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