IL PLS Store Front Wage Assignment
Date: Wed, 08/25/2010 - 20:02
I'm new to this forum and it's been a blessing with all the info found here so far. I made the unfortunate mistake of getting an installment loan at a PLS in IL. There was a 4 total loans broken down in $500 dollar increments and I was told it had to be this way as they could not lend more than $500 at a time.
I paid a total of $750 before I fell behind due to illness. They have sent a wage assignment to my employer and have so far taken out a total of $1050 dollars. Total I have paid them $1800 of the original $2000 a borrowed. I was not going to fight the garnishment as I've always intended to pay it. Now I find out that the total garnishment was for $3900 dollars. So now this $2000 loan is going to cost me $4650 dollars!
I'm already struggling as is and if I let them keep up with the garnishment it will last till the end of the year. I will be dead in the water by then. I understand I can get the assignment revoked but what can I do after that? How can I settle this once and for all without having to pay them another $2800 dollars in interest and fees? Any help would be greatly appreciated.
Is this a garnishment from the court or the voluntary wage assig
Is this a garnishment from the court or the voluntary wage assignment you signed? Wage assignments are VOLUNTARY and can be revoked at any time.
First, I would revoke the assignment in writing and give a copy to your employer. Your employer is REQUIRED to stop deducting money from your check.
Second, this PDL company is not following IL law. What's the name of the company? You may be able to only pay them the $200 left that you owe them, depending on circumstances. Can you share more info?
Here are IL PDL laws:
Lending of payday loan is considered legal in the State of Illinois.
Loan Specifications
Maximun Amount of Loan - Less than $1000 or 25% monthly gross income
Term of Loan - 13-45 days
Maximum Rate of Finance and Fees- $15.50 per $100
Finance Charge on $100 loan for a 14 day period - $15.50
APR for $100 loan for a 14 day period - 403%
Debt Limits
Maximum Number of outstanding loans permitted at a time - 2
Permissible number of Rollovers - None (Rollover cannot be done)
Cooling-off Period - 7 days after a period of 45 consecutive loan days
Repayment Plan - Yes
Limits of Collection
Collection Fees Amount - One NSF fee of $25 (Presentment limit is equal to 2)
Criminal Action - Prohibited
File your Complaint and get Information
Regulator - Illinois Division of Financial Institutions
Address - Consumer Credit Section, 320 W. Washington Springfield IL 62701
Phone - 888-298-8089
Thank you for the reply. The name of the company is Pay Day Loa
Thank you for the reply.
The name of the company is Pay Day Loan store or PLS. I just spoke with my payroll dept and was told this was a wage assignment not a court order garnishment. They told me that they had to honor it as its a legal document. I told them that it is revocable if I send them a certified mail saying I revoke it.
My payroll asked why I didn't respond within 20 days of receiving the letter and I replied saying I wanted to pay my debt and not just walk away from it. Now that I found out the fees I want to stop it and work with them on a fair settlement.
Its has now been 45 days since they started the garnishment. Is it too late to revoke the wage assignment? What kind of information do you need from me?
I have another question. Since I have 4 loans with them issued
I have another question. Since I have 4 loans with them issued on the same day and who separate wage assignments signed, do I send 4 letters revoking each of the wage assignments? Or will a blanket one suffice?
You can revoke wage assignment at any time and you don't have to
You can revoke wage assignment at any time and you don't have to do it via certified mail - an email will do. Did you sign this wage assignment in person? Do you have a copy of it?
Since they were all issued on the same day, I'd just say "any and all wage assignment(s) I may or may not have signed."
So you did sign these in person then?
Yes I signed it in person and I do have all 4 hard copies. I wi
Yes I signed it in person and I do have all 4 hard copies. I will email my payroll dept today and send it via certified mail as well. Thank you for your help.
Your best tool is that they are not following IL state law regar
Your best tool is that they are not following IL state law regarding PDLs. If they won't cooperate with you regarding a repayment plan, use the IL Div of Financial Services. Their number is listed above and they will help you. Also, if your HR department tries to give you any trouble, share the IL law with them. http://www.idfpr.com/dfi/ccd/pdfs/120205EnglishPaydayPamphlet.pdf
Hi! OK so I sent the letters revoking the wage assignment and h
Hi!
OK so I sent the letters revoking the wage assignment and had my payroll dept talk to our own internal lawyers and they still refuse to accept the letter. They said I had 20 days when I first got notice of the wage assignment to revoke it and now they say its too late. What else can I do to stop this? I can't make it with the amount they are taking out of my check every 2 weeks. I'm in the middle of losing my home and my wife is unemployed. Please help.
I just read this idfpr pamphlet. Since these are installment lo
I just read this idfpr pamphlet. Since these are installment loans looks like I am screwed. Man these people are shady. Told me I could only get installment loans and not pay day loans. Dammit.
"Installment Loans and title loans are not regulated by the Payday
Loan Reform Act. These loans can have high interest rates,
excessive and hidden fees and few if any consumer protections"
One more thing. Legal has advised payroll to not stop the wage
One more thing. Legal has advised payroll to not stop the wage garnishment until they receive a release from the debtor. Would the PLS have to send a release once they get the letter I sent revoking the wage assignment?
Looks like my employer is right to continue the wage assignment
Looks like my employer is right to continue the wage assignment since I did not reply to it after the first 20 days.
"
Legal Defense to the Wage Assignment
If an employee has a legal defense to the wage assignment, he or she must, within 20 days after an employee receives a notice of demand, or within 5 days after the employer is served with the demand, notify his/her employer, in writing, of any defense to the wage assignment. A copy of the written defense must be served upon the creditor by registered or certified mail.
If the employer receives notice of a legal defense within the requisite time period, the employee's wages are not subject to a demand served by the creditor, unless the employer receives a copy of a subsequent written agreement between the creditor and employee authorizing such payments.
If the creditor receives a copy of the defense prior to serving its demand upon the employer, such demand shall not be served upon the employer.
If the employee has not given a notice of defense within 20 days, the creditor may proceed with the demand, and the employer must begin payment to the creditor no sooner than 5 business days after service of such demand, unless a notice of defense is received within that 5 day period."
http://www.wildman.com/index.cfm?fa=news.libArticle&artid=56165ABD-BDB9-4A10-539E085A38B9BAAE