payday loan wage assignment please help!!!!

The Federal Credit Practices Rule (16 CFR 444.2) provides that wage assignments must be revocable at the will of the debtor.

This means you can simply revoke your wage assignment, and then they cannot use it. Write them a letter stating that you hereby revoke your wage assignment, send it certifed RRR.

However, that will likely make them mad. Since they are a storefront (presumably licensed), they might end up filing a lawsuit if you don't make acceptable arrangements to them. Once you revoke the wage, you will be best to call them again (the ball will be back in your court, for the time being), explain the situation, and now they might work up a different plan for you.

One more thing...Make sure you give a copy of this letter to your HR dept. It's very important that they get this right away, it's all about your money!! Wage assignments suck, because there is no cap.

They actually left me a message to give them a call so I'm going to do that tomorrow... Hopefully all will go well... What do I need to say in the letter exactly?... What will happen if they do put a lawsuit on me?... I can't believe all this is really happening... the age old saying, 'if I knew then what I know now..' ahh... life is a learning process... thank you for all of your help, you have no idea how much of a calm it gives me to know that I'm not the only one it happens to and others are willing to help you with their advice and experiences....for free....lol... Once again, thank you!

The letter can be very simple, you don't need to go into long detail.

I'd say to quote the law just so they know that you know what you're talking about. My letter would go something like this:
[quote]On XX/XX/XXXX I received your notice of intent to assign my wages. You should know that the Federal Credit Practices Rule (16 CFR 444.2) governs your use of wage assignments and provides that I may revoke it at my own will.

Accordingly, notice is hereby given that I revoke the wage assignment I executed on (insert the date you took out the loan).

Like Fins said, give a copy to your HR or payroll so that they know you revoked it.

I didn't mean to scare you by mentioning lawsuit. Although that is a possibility, creditors will only do that as a last resort. They would most likely only file a lawsuit if you sent this revocation and then never paid anything again.

Believe me, they want it to be paid off without going to court just as much as you do. The revocation just lets them know you're going to do it on your terms. If you contact them and make some sort of payments, I think you will be safe. Ask for a manager, explain your situation, let them know you're not just refusing to pay, but need a little more time.

We have all been there sometime or another, and it is indeed a learning process. Let us know how it goes.

I just typed out the letter. I'm going to mail it off tomorrow and give the other copy directly to my HR department. I haven't spoken with them yet but I will let you know as soon as I do. Thank you very much! I was really losing my mind until I came upon this site! I'm sure I can figure out a solution to my other financial woes thru this site as well. Once again thank you from the bottom of my heart! I will keep you posted! no pun intended!! :)

I have a question. Can suchalady revoke her authorization of wage assignment AFTER her employer has already received it? I thought one had to revoke the wage assignment BEFORE it was received by the employer?

Wage Assignments are voluntary and are not executed through a court judgement like a garnishment..the HR Dept can choose to refuse to honor it whether someone revokes it or not...Of course, the earliest communication with HR is the best way to go but as far as I know there isnt a hard and fast rule about HR having to have your revokation letter before the PDl sends the wage assignment. Its up to HR how they would want to handle.

I agree with volleyballmom. A company can receive a wage assignment and throw it in the garbage if they wanted to - they are not required by law to act on it.

Looking to the law I quoted above, it doesn't say that a debtor has to revoke it within some time-frame; it just says that wage assignments must be revocable. I would think that if an employer receives a revocation, then they would take the safe route and halt the wage assignment -- lest they might open themselves up to liability and lawsuits from the employee.

Also since Suchalady is in IL -- IL has specific laws regarding wage assignments. The creditor has to provide a Notice of Intent, which give the debtor 20 days notice that they intend to use the wage assignment. Along with the Intent, they have to provide a blank Affidavit of Defense that the debtor can fill out and send to the employer. If the employee fills out that defense form, then the creditor cannot proceed with the wage assignment.

Just reading this. Very interesting. Thanks for the clarification! I'm sure it'll help a lot of people who are getting wage assignments thrown at them!

Do u have to have a defense to revoke?

A defense isn't necessary, anyone can revoke at any time, because they want too. :wink:

Thanks for answering so fast. I just got a Wage Assignment notice from PLS Payday Loan Store in Chicago. I already called my payroll. It is a very large company and payroll advised they do not acknowledge anything without a court order. I will send my revocation letter RRR along with a payment and request for installment payments.

I have a loan with Advance America in Illinois and I sent them a letter to revoke my wage assignment. The office there told me I could not revoke until AFTER they send my employer a Notice of Intent. That is contrary to what is listed above. I'm so confused and don't know what to do! Help!

It's a voluntary wage assignment. You should be able to revoke it at any time. Make sure that your employer has a copy of your revocation so that if Advance America does send anything to them, they won't honor it.

Can you revoke a wage assignment from a store in your state? My understanding is that the FTC rule only applies to interstate credit transactions and that your rights in an INTRAstate transaction are governed by your state's laws. A lot of states prohibit wage assignments in any payday loan transaction, so I suggest you look there to see if you have the right to revoke.

Yes, I think you can revoke a wage assignment from a store in your state. Someone correct me if I'm wrong.

I've never heard of any states that don't allow revocation of a VOLUNTARY wage assignment. Many don't allow them at all, but I don't know of any that prohibit revocation.

Following is the address to find info regarding the FTC rule:

www(dot)ftc.gov/bcp/conline/pubs/buspubs/complcred.shtm

This is taken from their website:

The Rule covers all consumer credit transactions, except those involving the purchase of real estate.

A state may petition the Commission at any time for a state-wide exemption from any of the Rule's provisions, as noted under 16 C.F.R. Section 444.5 of the Rule.

It doesn't sound to me like a state would be able to have its own laws unless those laws afforded MORE protection to the consumer--not less.

In IL an employer MUST withhold unless the employee is able to submit an Affidavit of Defense. The employer does NOT have a choice in IL.

Also, read Illinois Payday Loan Reform Act of 2005. By Illinois law, you are allowed to enter a payment plan, interest free, if you are 35 days behind...it is the law!

I wrote the message above. I forgot to log in. I wanted to add that if you are having problems entering into an affordable plan, call the Illinois Division of Financial Institution.

buca,if a WAGE ASSIGNMENT EVOCATION letter is submitted to the HR or payroll person and the creditor.then a court order is required to garnish.i'm in IL so i know this because i submitted such a form to my former employer,and they got the court order.

[quote=Buca]In IL an employer MUST withhold unless the employee is able to submit an Affidavit of Defense. The employer does NOT have a choice in IL. [/quote]

"Legally", the IL Wage Assignment Act only provides exemptions for public employees:
[quote=740 ILCS 170/9](740 ILCS 170/9) (from Ch. 48, par. 39.10)
Sec. 9. All wages, salary amounts or other compensation paid by the State, any unit of local government or school district to any of its employees are exempt and not subject to collection under a wage assignment.
(Source: P.A. 79???502.) [/quote]It does not provide any sort of exemptions for the private sector. And so technically, what Buca said is true.

However, there is no means of enforcement nor any penalties for an employer who does not honor a wage assignment. Nothing is going to happen to an employer who refuses. (Unless, of course, it is court-ordered; then creditor can get a judgment against the employer).

I have a whole database full of employers in this state who won't honor wage assignments. Some lenders won't approve loans for people who work for those employers.

I don't know which Advance America in IL, you have a loan with but they ARE WRONG. You can revoke your wage assignment at any time. I can't tell you how I know this, I just do.

I took out a payday loan and have not paid them back due to some major set backs, today my employer handed me a Notice of Intent to Assign wages and says that i can prevent it by filling out a Notice of Defense not sure what that is or how to fill it out can someone help me....

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I live in Illinois & want to do a wage revocation for The Cash Store. Do I have to have this letter notarized?

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I live in CA were wage assignments are not legal but my employers payroll is in Atlanta and they are enforcing the wage assignment. I told I revoked it and gave them a copy of reciept of sending the revocation letter and they said they have to continue taking the money out until Flobridge tells them the order has been revoked. I told payroll that makes no sense and they said they are legally obligated to per our legal dept. So what gives?