Can a payday loan garnish my wages?

All i really know is they cant garnish wages with a court judgement meaning you have to go to court first,if they sue you they can get judgement. but thats a long process.

They say they will garnish your wages because you likely signed a "voluntary wage assignment." It is not valid. Write a letter to the company formally stating that you do not want to have your wages assigned (garnished) in order to repay the debt. By doing this you will have rescinded your wage assignment and it cannot be enforced.

Stress on the word "voluntary". This means that you may have signed for a wage assignment in case of default with the company, but it is completely voluntary. You can revoke it anytime. Just send the letter to the company telling that you are revoking the wage assignment. Inform your payroll about this so that the lender does not try to debit money from there. Send a copy of the revocation letter to your pay roll dept. Once done, make other arrangements with your lenders.

Which loan company are you having problems with?

Welcome "Help Needed"!

If you register with this site, you are offered a free debt consultation with a debt counselor who can discuss your situation and give advice. Also, most of us on this forum have or are still struggling to get out from under payday loans, and can give you a lot of useful advice and information. Chances are someone on here has dealt with the same lenders you're having trouble with and can give you some tips.

Which online lender(s) are you dealing with? How much was the loan, how much did you pay in fees before defaulting, etc.?

There is a wage assignment revocation letter you can send out if they are threatening you with wage garnishment. If you can post more details, we can go from there.

The laws in your state will determine whether the loan company has the rights to garnish your wages. Each state has its laws about which property can be seized and which property is protected from the creditors. There are a few states like Texas that does not allow wage garnishment at all. Money owed to the federal or state government cannot be exempted. Wages can be garnished to pay the child support or the student loan. There is a federal legislation regulating wage garnishment. Your particular state might be required to follow the federal guidelines.

One man called me and said he knew where I lived, and would be sending over some "collectors" if I didn't "pay up. AND PAY UP NOW LADY" I was frightened..

It is hard not to get rattled when you get threats like that, but that's all they are, empty threats to scare you into paying on the spot. Don't fall for it. Just tell them they are in strict violation of the fdcpa Laws. Know your rights and enforce them. For each violation they are guilty of, you are entitled to $1000.00 per violation.

Well..I don't know if it was related, but 2 days after that I woke up and went out to my car and all my windows were smashed. :( I defaulted on my car loan that month and paid them the 120 dollars I owed. Let the car get repoed. Sure seemed like they followed through.

Oh I love garnishment questions, because I can bring my job skills to the forums!!!

Help needed...

More than likely the payday loan company you're dealing with is not licensed in your state, so there wouldn't be a magistrate in this land that would award them a judgement.

HOWEVER..There are a few things to watch out for... Like the others said, they can and probably will employ a wage assignment. You need to immediately send a wage assignment revocation letter to the pdl company. You need to also give a letter of defense to your payroll dept IN WRITING!!!!!!!! That is very important. If you could register with the site, you would be able to use the pm option..I can help you with these letters, but I need to be able to pm you. If you are writing a letter of defense prior to actually receiving a wage assignment, there are some key things you need to include. Please register and pm me.

One other thing..Even though the pdl is not licensed in your state, they can simply sell the debt to a collection agency that is licensed..And they can get a judgement..With a whole bunch of collection and court fees added on. You don't want this, or the black mark on your credit report.

The best thing to do is to keep in contact with them and try your darndest to set up payment arrangements. In my experience, if you are communicative and honest, they generally will work with you and ease up on the threats after a bit of bluster.

I hope you will register..Like I said, I would be glad to help you and answer any garnishment or wage assignment questions you have. Not only that, but you can learn a lot from this site and get some terrific advice from a lot of people who have been or are in your shoes.

Can a payday advance company take without notice my entire paycheck?

can a online company called chem /payday loan garnish my wages....they went thru a collection agency called lighthouse recovery associates..they are in centennial co...i live in ohio..i started paying the loan about half way thru the loan i could not finish due to financial dificulty..i have not heardfrom them for 8 months until last week demanding balance in full....any advice..thanks

lighthouse is a bottomfeeder.they can't garnish without a court order.you ipdl is illegal in ohio.so if you gave your HR person a wage assignment revocation letter.they can't garnish period.

thanks for the help..one more question ..what exactly is a wage assignment revocation letter.where do i get one..and do i give it to my payroll person..thanks for all your help

it is a letter by you that states you are revoking the wage assignment. mine was simple.

dear sir/madam,

i am hereby revoking any wage assignment i may have signed with your company.it is a voluntary instrument,and revocable.

sincerely xxxxxxxxx

anyway it's just like that.there are templates,but you can draft it yourself in your own words too.

Don't let lighthouse get to ya, I dealt with them off and on for about two weeks and they finally left me alone and it's been over a year. The last conversation I had with them I told them I was on my way to my attorney's office to discuss their illegal tactics and I haven't heard from them since.

Basically, we are in financial bind. Husband is getting laid off in about two weeks, have four kids. Need to survive and pay bills and buy food. I have two birthdays in this in december plus christmas. i have not taken out payday loans online before. We have opened another bank account so that we may do so that way if they start to take out money they are not supposed to we can close the account. I live in the state of wyoming. Is it legal for them to garnish his paycheck if he defaults on loans? Does anyone know the Wyoming state law in regards to online payday loan garnishments?

I wish I knew that wage garnishment can only happen by court order! 1000 cash overnight garnished my wages (i was on a monthly payment plan) for $475.00 and the company i work for went ahead and paid it although the employee handbook and the accountant herself confirmed they can only garnish my wages by court order! i was so frustrated...it caused me a whole lot of heartache, embarrassment and not to mention made me even further behind in my bills (caused by the entire payday loan scenario! any advice on how i can approach my hr and payroll department about a matter which already happened?

I took out a payday loan at PLS, and started to have financial troubles and wasn't able to pay. They sent me a letter in the mail saying that they were planning to garnish my wages and claimed that they had sent a copy to my employer. That was like 3 months ago and still nothing has happened. Is it possible that their waiting until the dept grows double the original amount in interest before they pounce. I'm in Chicago.

Quote:

I am trying to find out if in Va can allied cash advance Garnish my paycheck? I had dealt with them with the pay day thing then they offered something else and a line of credit.. I continued on paying that for forever like 2 years the line of credit I was having to pay interest of like 190.00 dollars a month for a 700.00 loan..now they are telling me that they are going to garnish my check. can they?? I went two months without paying them I told them I would give them 50.00 they wouldn't take it .That is when they said they would garnish my check. Can they do that ?? Or will I have to go to court first before they can garnish my check?

This loan company contacted me after six years of the loan being in default. Now they are telling me they will take me to court. Is there anything I can do?

well a couple of questions.

1)who is the lender
2)how much was borrowed
3)how much was debited or paid to the lender
4)was this an internet,or storefront loan
5)what state are you in

you see alot of illegal internet pdl's will threaten court,or arrest.in fact 6yrs it might past SOL for your state.please try to answer my questions,and know this.a phone threat is just that a threat.

My state is Indiana and I recieved a call at my work regarding a possible wage garnishment for an unpaid payday loan she said was back in 2008 or before she didnt know? She said the loan was for "cashtoday"? Now the loan is for $900.00. She told me that they have sent documentation in the mail (not true) and told me that the only way she could stop it would be for me to either give her my debit card info or go buy a prepaid debit card. I told her that I was not going to give her my card info and got very mad at me and tried real hard to intemidate me, didnt work. I've gone for years and haven't heard a word from these scums about any of my old payday loans from about 6-7 years ago until yesterday. She then told me that she woul have to speak to my payroll person to get the wage garnishment set up. I know that the company is unlicensed in Indiana, can they still still try to garnish my wages? I am not sure if I signed a wage assignment or not. Like stated above, these loans were back in 2006-2007. The number was 218--600--1714. Any help would be great! Thanks! Should I be worried?