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Debt Consolidation Forums Getting a loan or mortgage and avoid foreclosure forums threatening to garnish a/c on defaulted payday loan

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I'm from Michigan. My husband and I were in need of some fast cash for bills. We found for a payday loan. My husband applied and we got it. We had to sign an agreement with this company stating taht if we defaulted, the amount plus legal fees would be taken out of my hubby's paycheck. My hubby didn't sign it, I signed his name for him (with his permission). Well a couple weeks after we got it, my hubby needed surgery and this left him unable to work. He is collecting FMLA from his employer at $276 a week. Now we have 2 kids and are facing shut offs. I am currently seeking employment. Anyways, we defaulted on this payday loan. Now 200cash says that they will garnish. They said that they don't need a court order to do so and have already contacted my hubby's employer to garnish. I really need help to deal with We cannot afford a garnishment. And they refuse to make payment arrangements with us.

First of all, they have to go to court and get a court order before they can garnish. I have yet to hear of an online lender going to court to get a garnishment. This is a common threat among online pdls like

Sub: #1 posted on Tue, 06/27/2006 - 19:40

Not so Lucky Not so Lucky

(Posts: 3041 | Credits: )

They said that they have already contacted my hubby's company. And I know that they aren't lying because they gave names of the people that they talked too.

Sub: #2 posted on Wed, 06/28/2006 - 08:14


Stacey, ask your husband to inform his payroll about the activities of Legally speaking, the company cannot garnish the wages with a court order. You must be served summons and asked to explain the situation in front of the judge. If they are trying for wage assignment, that is voluntary and doesn't require a court hearing. But you have the rights to revoke it at anytime. Inform the payroll so that the deductions are not done in the first place. If required, close your checking account if that helps. Then you can contact and work out arrangements with them.

Sub: #3 posted on Wed, 06/28/2006 - 16:20

andyyoung andyyoung

(Posts: 451 | Credits: )

What is the difference between garnishment and wage assignment? 200cash will not work with us. I have tried asking them for some kind of arrangement to pay down the loan and they said no. Being that I was actually the one who signed the all the stuff to get the loan (I signed my hubby's name with his permission no forgery....LOL) would that cancel anything out? I mean being that it's not his actual signature?

Sub: #4 posted on Wed, 06/28/2006 - 18:52


Oh, I love the way these PDL companies ( call it garnishing instead of wage assignment..They're trying to trick you.
Stacey, first off, don't tell them that you signed your husband's name. Not sure what the legal ramifications are, but not a good idea to tell them. Send them a wage assignment revocation letter right away...And send it to your husband's employer, also. This will take care of it..A wage assignment is completely voluntary and you can rescind it at any time. All you need to do is write a letter with the date and amount of the debt and state that you revoke any wage assignments. If you need some help, just do a forum search on revocation letters. Fax a copy, mail a copy(certified, receipt requested) and keep a copy for yourself. Don't forget to send one to payroll.
By the way..Like Tammy said, it would be very difficult for an online lender like to get a judgement, unless it's a huge amount and you've paid next to nothing..even then it would be tough. And..FMLA checks CANNOT be garnished. But get those revocation letters out right away, because voluntary deductions (which is what an assignment is) CAN be done on FMLA checks.

Sub: #5 posted on Thu, 06/29/2006 - 11:45

finsfan13 finsfan13
(Posts: 6919 | Credits: )

I hate this company. This is a wage assignment and I did everything you said to do. I wrote them a letter stating that we were cancelling this and did the same to hubby's employer. I checked my bank account today and I am $465 in the negative thanks to them. They deducted all that from my account. I can't close my account now until I get a positive balance. Is there anyway to get this money back?

Sub: #6 posted on Fri, 06/30/2006 - 08:31


If you revoke a wage assignment they CANNOT honor it..Did you get it there in time? If you got the wage assignment revocation letter to your husband's employer BEFORE they did payroll for that pay period, then they have to honor it..I'm wondering if it was too late. Do you have a copy of the wage assignment? There MAY be some things you can do...Check your pm.

Sub: #7 posted on Fri, 06/30/2006 - 11:40

finsfan13 finsfan13
(Posts: 6919 | Credits: )

My husband sent a letter to his employer stating that he wishes to revoke/cancel the wage assignment, but they are still going to do it. I know this isn't legal. I also found some interesting facts about wage assignments. The biggest one being that it has to be signed in person and witnessed and cannot be faxed. If it is faxed, then it's automatically voided.

Sub: #8 posted on Thu, 07/13/2006 - 12:29


You're right... It's also automatically voided if it doesn't say wage assignment in bold type and have all the pertinent info in the first 3 paragraphs...
Stacey, if you want to revoke it your husband's employer has to honor what you want. Period. You have the right to revoke this at any time, i don't care what the payday loan places say...They bank on people not understanding them, and a lot of payroll depts don't..That's why you have to set them straight.

Sub: #9 posted on Thu, 07/13/2006 - 14:43

finsfan13 finsfan13
(Posts: 6919 | Credits: )

Stacey according to Michigan law, cant garnish wages and your husband's employer CANNOT honor because they didn't legally seek the garnishment. Send them a fax saying you revoke the wage/garnishment assignment per Michigan law: 1939 PA 21, supra, Sec. 17 provides:
'No assignment of or order for payment of any salary, wages, commissions, or other compensation for services, earned or to be earned, given to secure any loan made by any licensee under this act, shall be valid unless the amount of such loan is paid to the borrower simultaneously with its execution; nor shall any such assignment or order, or any chattel mortgage or other lien on household goods then in the possession and use of the borrower, be valid unless it is in writing, signed in person by the borrower, nor if the borrower is married unless it is signed in person by both husband and wife, provided that written assent of a spouse shall not be required when husband and wife have been living separate and apart for a period of at least 5 months prior to the making of such assignment, order, mortgage, or lien.
'Notwithstanding the provisions of any other act, a valid assignment or order for the payment of future salary, wages, commissions, or other compensation for services, may be given as security for a loan made by any licensee under this act, and under such assignment or order a sum not to exceed 10 per centum of the borrower's salary, wages, commissions, or other compensation for services shall be collectible from the employer of the borrower by the licensee at the time of each payment to the borrower of such salary, wages, commissions, or other compensation for services, from the time that a copy of such assignment, verified by the oath of the licensee or his agent, together with a similarly verified statement of the amount unpaid upon such loan and a printed copy of section 17 of this act, is served upon the employer.'
Your state representative states:
Honorable H. Lynn Jondahl
State Representative
The Capitol
Lansing, Michigan 48909
A creditor, like, who wishes to execute a wage assignment must provide the borrower/employee with a court hearing to determine the validity of the wage assignment and the fact that the employee is in default. Send that statute along with your request to revoke wage assignment/revoke wage garnishment and tell your employer they are illegal and if they allow them to garnish your husband's wages they will be assisting them in their illegal actions.

Sub: #10 posted on Mon, 05/05/2008 - 11:22

eulogyforinnocence eulogyforinnocence

(Posts: 38 | Credits: )

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