Important information about wage assignments
Date: Fri, 06/23/2006 - 20:54
I have worked in hr for 6 yrs now, and the bulk of what I do is payroll..Meaning I handle a lot of garnishments and from time to time wage assignments. I have to be fluent in both federal and state laws on these, and I know that there is a lot of confusion about wage assignments, so I'm going to explain them..
A wage assignment is NOT ILLEGAL!! Yes, there's a protocol as to how they're supposed to be written, but to call them illegal is wrong. They're voluntary..basically it's an IOU. If payroll gets one..we honor it..unless the employee comes to us with written revocation. There is no specific way to write a revocation letter..If I got a letter from an employee that says "I'm Joe Smith. It's June 24,2006. I revoke any an all wage assignments" I would honor that. As long as it has your signature it's enough, although I would suggest it to be a bit more professional. Also, the unfortunate thing about a wage assignment is that it's one lump sum. there's no breakdown. If the assignment is for $600, that's what's going to be taken out of your check, so in that case it's worse than a garnishment. A wage assignment does not go on your credit report, because there is no court order, and it shows up on your paycheck as a voluntary deduction. These seem to be getting more common..I have seen several recently, and they are all from sub-prime rental places. My husband said one of his employees got one from a credit card company.
So..If you have several payday loans, send wage assignment revocation letters to all of them. You can give just one to your payroll person, but try to be as specific as possible and try to name each of the pdl companies in it.
I hope this helps! It won't stop a garnishment, but I have never ever received a garnishment for a pdl..and neither has my husband..I think a company operating illegally would have a hard time getting a judgement.
YAY! We are aware about the wage assignment concept in this way
YAY! We are aware about the wage assignment concept in this way only. You have expressed it in a more practical way.
The problem is not on the side of the people. The companies try to attach a digital signature giving the wage assignment a valid shape. They contact the payroll and try to deduct the money instantly. If there is no signature in person, the wage assignment is void.
As you are in the payroll dept, you might be aware of the infamous companies trying to do the wage assignment in illegal terms. They will contact you immediately before you receive the revocation letter from the person. I will ask you something if you do not mind. In case, a company tries to do wage assignment illegally and before the revocation letter from the person reaches you, do you notify the person whose wages are about to be garnished? Or you just let it happen since the revocation letter didn't reach you in time.
Guns...Wage assignments really suck, because we're not obligated
Guns...Wage assignments really suck, because we're not obligated to inform the employee, unlike a garnishment. I however, would notify the employee. wage assignments are sneaky as heck, just like the people who generally use them.
The problem with the digital signature is that honestly, most payroll departments wouldn't think to look for them. We get an assignment we honor it, period. I only learned about the digital signature a few months ago..and it was here that I learned it. I have never gotten a wage assignment for an employee from a pdl..I've gotten them from rent-to-own places, which always seem to be right next door to store front payday loan places around here! So..I have never come across a digital signature myself.
That's a good point about the revocation letter not getting there in time, and it could easily happen, especially if you work for a large corporation and have no personal contact with the payroll dept. That's why it would be a really good idea if you have payday loans to think ahead and get the revocation letters out right away.
I am sure most of the payroll depts. know about companies often
I am sure most of the payroll depts. know about companies often threat with wage assignment. I will believe that the payroll will notify the employee before honoring if both have a good work relation. Why get a person scammed when the illegal intentions of the companies are known to you.
In your rent to own places, do you get all the wage assignments in legal shape, or they also happen to be disputed just like some lenders send in illegal ways?
You're right..I think most payroll departments WILL notify the e
You're right..I think most payroll departments WILL notify the employee, it's just common courtesy.
When you say "legal form" do mean through a court, or just written the way they're supposed to be..i.e wage assignment boldly written on top, amount clearly visible, company name and address in first several paragraphs? The ones I've seen I believe were in proper form. I think at these rent-to-own places like rent-a-center and colortyme they make you sign a wage assignment when you fill out the contract to rent, probably without even knowing you're doing it.
I really think that wage asignments are an ugly, sneaky way to collect a debt, which is why I will always inform an employee if I get one. But..Think about this...My husband also does hr work..He is the corporate hr manager for several sam's/walmarts in my area. He has to do payroll for A LOT of people. My husband doesn't know a darned thing about payday loans..never even heard about them until I screwed things up a bit by taking out a few.. If he was to get a wage assignment for a payday loan place he might not know it has illegal intentions. If the comapny is Rio Resources, well that could sound like a completely different entity. He would notify the employee..because that's just how he operates. But..If you're working for a place that has a zillion employees and payroll is done in another location, there is a possibility that they would not let the employee know, which I think is really really crappy. On the occasions that I've gotten wage assignments on people I have given them a copy. Oh..And by the way...I THINK, but I'm not sure, that the creditor has to send a copy of the assignment to the employee's personal address, so it may not matter anyway.
I want to thank everyone for their post on this subject. I just
I want to thank everyone for their post on this subject. I just did a letter of revocation to HR and was informed by payroll that my company does not honor independent request for deductions, only court ordered garnishments. Which makes me feel better, because I just got a call from one of my PDLs wanting to be connected to my supervisor and the payroll department. Thanks to you guys in this forum, I am beginning to see the light at the end of the tunnel. Last week was the first week in a long time that I was able to control my paycheck and it felt good. I know I have a long way to go, but it is worth it to be in control over my finances. I am so glad I discovered this forum.
pd loan/wage assignment
hi,, pls tell me the difference between wage assignment and garnishment,, i am being threatened by a pd loan comp,, i asked them for extention till 7-14 to pay out the loan but they wont hear of it.
cathi
Lets see if I can help you and not confuse you. Wage assignment
Lets see if I can help you and not confuse you. Wage assignment is voluntary and have to be signed in person and is revokable at any time. Wage garnishment is where they take you to court and get a judgement against your wages. I am thinking that they can only garnish 25% of your income per pay period. If I have explained this incorrectly or forgot certain points, please correct me.
pd loan
Thankyou tammy,i understand now,
my loan was done online wth electronic signature,i just was not sure if they could just go into my payroll and garnish my wages as they are threatening to do.
Cathi
Tammy, you're right. Lassie_sassie, send a wage assignment revoc
Tammy, you're right. Lassie_sassie, send a wage assignment revocation letter right away. And Glynnie, yeah, I guess someone COULD scam you that way, but they'd definitely get found out. I've never heard of that happening.
Kenthia, welcome to the forums!!