My sister just received a wage assignment from her payroll

c38nfrnt, can you tell us the type of the loan that she took? Wage assignment must be clearly mentioned in the contract paper while your sister signed it. Read the agreement papers very carefully and see if the wage assignment has been mentioned in it. If it has not been mentioned there, you are not in a legal problem. You can simply revoke it.

It is very important that the consumer should be made aware of the wage assignment process while signing the contract. Read the papers very carefully and see if your sister has given them the permission to do so.

It was for a payday loan at a local business. The paper she signed did say wage assignment however she was not sent anything 20 days before the employer was notified.

Wage assignment does not need the employer to be notified 20 days in advance. This sort of notification before the court hearing is sent in case of wage garnishment only. Since wage assignment does not require court hearings, wages can be deducted from the payroll since your sister has voluntarily signed for it.

Your sister's best move will be to contact the lenders and arrange a payment plan with them. As this debt is a valid one, the lenders will force her to pay it. It will be good if she can advance some money and stop the wage assignment process. Hopefully, she won't have to go through this process.

Although wage assignments do not need legal hearing, but there are some other procedures that are required to be followed.

Read this page and see if the following points have been mentioned in the contract.

http://forums.debtcc.com/forums/wageassign-legal.html

Do let us know the reply after reading the above thread.

Everything seems like it was followed except:

The notice to the employer should be sent only after a notice about it has been sent to you. You should receive this notice 20 days before your employer receives it.

She didn't receive anything from the loan company since Oct 2005.

c38nfrnt, on the basis of this point, you can revoke the wage assignment by mentioning that you were not notified before they reached your employer.

Does the written contract mention anything similar to this point? If not, then you can surely send a revocation letter since the process is 'voluntary'.

I have the last letter that she received which was 12/29/05. It just states that their "legal department" has revieed the file and have decided not to file suit at this time. However they reserve the right to file suit at any timeduring the applicable limitation period.

Not once does it say about contacting the employer.

She knows that she owes the money but she wants to make sure that everything is done legally.

Thanks for the info.

You will get more information and know about the lender's actions if you call them. This will sound helpful because your sister has to be notified about the wage assignment process in writing. Call them and make arrangements favorable to the situation.