Garnishment

dlaw, this is by far NOT a stupid question. This is a very IMPORTANT question! And, thank you for asking! A wage assignment is something that some pdl's have you sign. You may/may not be aware if you've even signed one. That's why it's important to revoke any wage assignment you may have signed when you are revoking their debit authorization. The main ones that do a wage assignment are the overseas illegal ones. A wage assignment is a VOLUNTARY thing. What they'll do, is if you don't pay them, they will send your employer a wage assignment. This is really just an incredible thing. But some employers actually honor it. A wage assignment states that you have "given permission" to your employer to pay this debt. And you have given your employer "permission" to pay it. It is TOTALLY VOLUNTARY. Your employer does NOT have to honor it. It's actually illegal in some states. So if you have any illegal pld's that are overseas, make sure you immediately send them a letter revoking any wage assignment you may have signed. Email it/fax it/ mail it certified. Keep a copy for yourself. Give a copy to your payroll person. They will try to sneak one in anyway, so you'll be covered. It doesn't hurt to "educate" your employer that these are VOLUNTARY and do not have to be honored. Please note that. A wage "garnishment" is legal; however, they would need a court order to get a wage "garnishment". The illegal companies most likely won't do this (as they are illegal). But watch for the wage assignments. If you have ANY questions regarding them, just post. We've got info. for you!

I din't know what a 'wage assignment' was, either. Thanks for letting us know. In different letters, I have recieved from CA's, about unpaid PDL's, it states, " we are willing to take payment arrangements. We've decided NOT to 'attach your wages'". As high as some % rates are, for PDL's, I din't think they could ( legally, anyway) actually take ALL of that %, from a paycheck. I DO know some PDL's, that are licensed in the state of PA, can only take the % rate, that is 'statued by law in the state in which you live'.

But legally they can take 0% of ur wages without a court order (judgement) That's why u must revoke all wage assignments. This is strictly volunteer!
Hope this helps a little bit,
Ang

FYI - if you find yourself attempting to set payment arrangements and the PDL wont accept them; if they threaten with a garnishment (legal) it may be more advantageous (sp) for them to accept your arrangement. Some states have a cap of 10% while others law reads that the garnishment can be attached after 'living expenses' (ie rent/food etc). The legal PDL may end up receiving far less then they anticipate or decide its really not worth the legwork. They are just nasty & think they can intimidate you. You may be able to convince the PDL to take the $ you are offering (IF it's a legal PDL to begin with).

cannr, how do find out if "wage assignment" is legal/or illegal in your state?
I am NC.
would be good to have a copy of that handy.
thanks!

Please view a previous thread that will help you understand Voluntary Wage Assignments better.

http://www.debtconsolidationcare.com...tary-wage.html

Wage assignment is legal in all states but please understand that it IS voluntary!! Unless the creditor has a judgement u can revoke any wage assignment and that's the end of that!
Hope this helps u to understand a bit better! Also, the thread up above is a great read!
Ang

Wage assignments are not legal in all states. In fact, they are illegal in many. Oregon and Florida are two off the top of my head that specifically have laws saying no wage assignments are allowed as security for loans.

Ahh thanks for that info Goud.
I stand corrected. Guess i shouldn't assume, i assumed since it was voluntary it was indeed legal and it is in my state..
So sorry for the misinformation there!!

Ang

Also, that states that allow them have requirements that must be met for the assignment to be considered legal. Usually this is something like:

1. Wage assignment must be on it's on sheet of paper. (Usually the pdl's will just put a clause somwhere in the contract burried deep so it isn't seen.)

2. The words Wage Assignment must be a certain size on the page, so that it is easily seen. (No pdl does this either, since they don't even put it on it's own page)

3. Must be signed in person. (Most pdl's use your electronic signature)

4. If you are married your spouse must consent. (No pdl requires your spouse to sign too)

These are just some of the normal requirements for wage assignments. See the thread PDL Investigator mentioned above for some more information. There is even some information about how a legal company goes about using wage assignments. It's like night and day from how a pdl uses them . . . .

Ya know goud this made me once again think of Kate... so her employer did indeed allow a wage assignment from a pdl and she's now finished paying them off completely! She's also in FL!!
So, she got double whammied huh? Not only did they allow the wage assignment AFTER she revoked it but they're not even legal in her state???
WOW!
Thanks for the info,
Ang

Ok I may have misread Cannr's post, where she said it was illegal in some states. I just thought if that was the case, maybe I could have that to add to my stack of paperwork on my case....

I agree it was a good link, I also though like what Goudah had to say about the uneducated HR people.

My thing is that I do not have any emails or paper work to go back on,I did apply but they money came from others who was not who I applied with in the first place, but the accounts are now sent to collections (arm and jackson phillips), and if I was to make my payroll dept (which is like a couple of people) even slightly aware of what was going on.. I dont even think they would :

a-understand what I am telling them,
b- they can be kind of "upity" (sp?) if you get my drift and give me some flack over it,
c- they have it pretty good, so I doubt they would even know what a Paydayloan is.

No, you didn't misread anything. They are illegal in some states.

ok cool, I thought I read that...I was beginning to think I needed glasses or something..

Goudah, were could I go to find out if it is legal or not in NC.

I dont see to see anything on the AG website..

Let me check - I think I've looked before and couldn't find anything outlawing them in NC - But since pdl's are illegal in the first place, it doesn't matter. There can't be a legal wage assignment on an illegal loan.

Oops - I was wrong. It was another state I was thinking of that I'd already checked. They are illegal in NC!