Indiana Wage Assignment Law and Sonic Payday
Date: Mon, 08/21/2006 - 22:11
In my recent issue with Sonic Payday, they've threatened me with Wage Assignment. I've gathered some excerpts from the Indiana code on Wage Assignments:
[quote]IC 22-2-7 Chapter 7. Assignment of Wages
IC 22-2-7-4
Married persons; consent; exemptions
Sec. 4. (a) No assignment of wages by a married person who is living with the person's spouse residing in Indiana to any wage broker shall be valid or enforceable without the consent of the spouse, evidenced by the spouse's signature to said assignment, executed and acknowledged before a notary public or other officer empowered to take acknowledgments of conveyances. No wage broker or person connected with the married person directly or indirectly shall be authorized to take any such acknowledgment.[/quote]
I read this that they can not assign your wages without your wife's/husband's signature also. I'll find out tomorrow when i speak with my lawyer. It also states:
[quote]IC 22-2-7-3
Interest; rates and charges
Sec. 3. No wage broker shall ask, demand or receive, either as compensation or interest, or in any other manner, directly or indirectly, any compensation or interest for the use of money advanced or loaned by him to any employee or wage earner in excess of the rate of eight per cent (8%) per year, and said compensation or rate of interest shall be computed upon the amount actually advanced to and received by the borrower, and no commission, compensation or charges in addition to the interest above named shall be asked, demanded or received by said wage broker or any other person for making or securing said advancement or loan. [/quote]
Which I read to say that they can only get 8% interest on the loaned amount. Not the 600-700% that they charge.
Also worth noting:
[quote]IC 22-2-7-7
Violations
Sec. 7. A person who recklessly violates this chapter commits a Class B misdemeanor.
(Formerly: Acts 1909, c.34, s.7.) As amended by Acts 1978, P.L.2, SEC.2206.
[/quote]
And:
[quote]
IC 22-2-7-8
Forfeitures
Sec. 8. Any note, bill, or other evidence of indebtedness and any assignment of wages or salary given to or received by any wage broker or any other person in violation of any of the provisions of this chapter shall be null and void and of no effect; and upon conviction, any and all moneys advanced or loaned by said wage broker in violation of any of the provisions of this chapter and all interest thereon shall be forfeited.[/quote]
This one isn't quite as clear to me, but I read this that if they violate these laws that they forfeit the money you owe them. Again, this is a guess. I'll have more info later.
Any comments?
http://www.ai.org/legislative/ic/code/title22/ar2/ch7.html
[quote]IC 22-2-7 Chapter 7. Assignment of Wages
IC 22-2-7-4
Married persons; consent; exemptions
Sec. 4. (a) No assignment of wages by a married person who is living with the person's spouse residing in Indiana to any wage broker shall be valid or enforceable without the consent of the spouse, evidenced by the spouse's signature to said assignment, executed and acknowledged before a notary public or other officer empowered to take acknowledgments of conveyances. No wage broker or person connected with the married person directly or indirectly shall be authorized to take any such acknowledgment.[/quote]
I read this that they can not assign your wages without your wife's/husband's signature also. I'll find out tomorrow when i speak with my lawyer. It also states:
[quote]IC 22-2-7-3
Interest; rates and charges
Sec. 3. No wage broker shall ask, demand or receive, either as compensation or interest, or in any other manner, directly or indirectly, any compensation or interest for the use of money advanced or loaned by him to any employee or wage earner in excess of the rate of eight per cent (8%) per year, and said compensation or rate of interest shall be computed upon the amount actually advanced to and received by the borrower, and no commission, compensation or charges in addition to the interest above named shall be asked, demanded or received by said wage broker or any other person for making or securing said advancement or loan. [/quote]
Which I read to say that they can only get 8% interest on the loaned amount. Not the 600-700% that they charge.
Also worth noting:
[quote]IC 22-2-7-7
Violations
Sec. 7. A person who recklessly violates this chapter commits a Class B misdemeanor.
(Formerly: Acts 1909, c.34, s.7.) As amended by Acts 1978, P.L.2, SEC.2206.
[/quote]
And:
[quote]
IC 22-2-7-8
Forfeitures
Sec. 8. Any note, bill, or other evidence of indebtedness and any assignment of wages or salary given to or received by any wage broker or any other person in violation of any of the provisions of this chapter shall be null and void and of no effect; and upon conviction, any and all moneys advanced or loaned by said wage broker in violation of any of the provisions of this chapter and all interest thereon shall be forfeited.[/quote]
This one isn't quite as clear to me, but I read this that if they violate these laws that they forfeit the money you owe them. Again, this is a guess. I'll have more info later.
Any comments?
http://www.ai.org/legislative/ic/code/title22/ar2/ch7.html
Thank you for this information. I too am from Indy.
Thank you for this information. I too am from Indy.
Since the mid-eighties wage assignments are revokable, period. T
Since the mid-eighties wage assignments are revokable, period. The only exception is a court appointed wage assignment(not to be confused with a garnishment, there is a difference)
