Sonic Payday Garnishment

I received an email from Sonic Payday informing me that they would contact my payroll department if I dont contact them to make payment arrangements. I am thinking this has something to do with the wage assignment, however I dont remember signing any agreement for a wage assignment when I took out the loan. I was under the impression that a wage garnishment could only be ordered by the court, however a wage assignment is some type of contract you agree to and sign and if you do so, then the lender can use this agreement to have your payroll department deduct payment. Could someone clarify please. Thanks

It is very necessary to know the nature of the contract that was signed by you. You need to clearly know the fact if you signed for a wage assignment or a wage garnishment.

Under the wage assignment process, the creditor is not required to take notice from the court at the time the debt has been incurred. When the papers were served to you, if the consumer agrees to the wage assignment terms, the creditor can serve a demand on the consumer's employer if he has defaulted the loan for the portion of his weekly wages until the debt is paid off. This entire process does not require any court judgment before serving the demand to the consumer's employer.

Under the wage deduction or the wage garnishment process, the creditor is bound to obtain a court notice before judgment is filed in the name of the consumer.

The amount in both the cases deducted is the same from the employee's wages

Therefore, it is very important to know the terms of agreement before signing the papers of contract.

Regards
Roxette

I have my original contract with Sonic Payday and the only mention of a "wage assignment" is as follows "Security Interest: You are giving us a security interest in your wages in the form of an assignment of wages". The contract does not explain what this means, nor did I have the faintest idea what it meant when I signed it. I thought it had to do with my paycheck as being security for repayment of the loan, not that I was giving permission for my paycheck to be garnished if payment was late or if I defaulted. If they are able to get away with this, then all payday lenders could put a statement like this in their contract. That is a scary thought. There must be some way of revoking permission for the wage assignment.

Tracy, you thought about the other end what lenders can do at the worst. But you should think from this end too. Lack of proper knowledge while signing the contract was evident in your case and that is the reason, the wage assignment took place in your account.

If you have had complete information about the difference between wage assignment and wage deduction, you would have taken correct measures and solved this matter accordingly.

I think if lenders can make rules to oppress the consumers, then consumers can also educate themselves to the peak to fight against these laid situations.

Tracy, it's just my opinion to you. Please don't take it the other way. Not everyone comes learned right from the birth. You have learned a lot from your previous times in this forum and from somewhere else also. Remember, that each day is a learning day and each day we get new ways to fight against the bad things.

I guess I should have retained a lawyer to explain the contract to me before I signed it. The statement is vague at best and does not clearly say that by signing the contract that you are agreeing to a wage assignment.

From what I am gathering, since this statement does exist in the contract that I and others like me have signed, Sonic Payday has every right to wage assignment.

I fear it might be the case since they can strongly prove that they mentioned about wage assignment in the contract.

If you live in Texas, Sonic cannot garnish or do anything with the wage assignment. I was told that specifically by Sonic's Collection Agency.

thanks Shbear for bringing that point. There are specific state laws for wage garnishment or wage assignment to legally put into action.

Wage assignments are usually not put by the creditors because it is more risky to them only. It happened so in 1984 when FTC passed a rule that the creditor has to mention in the wage assignment deed that it can be revoked anytime by the consumer. Thus, the consumer has the positive chance to cancel or rescind the wage assignment during the process. A letter has to be sent to the creditor mentioning that the wage assignment is revoked. Thus, the creditors rarely use this weapon because it can hurt them only in the long run.

Also, not to forget that if a wage assignment has not been written in the perfect revocation language, it is federal as well as a state violation of the law. Thus, the consumer can easily revoke it if it does not meet the terms. Thus, you can put a stop to any collection from your employer. So, consult your attorney is you have entered a wage assignment

Regards
Roxette

Knee

First of all, wage assignments are totally voluntary. You can take it back at anytime. And second---wage assignments have to be SIGNED in person. Did you sign the paper and fax it back to them? Or is there just a stamp (typed name) and your social security number? None the less...you have to be there in person (and that witness on the wage assignment sheet has to sign in person).

Please make your payroll department aware that you took back your wage assignment and you revoking Sonic and E-Care Centres from assigning anything to your wages. Please also make sure they are fully aware of the wage assignment laws and that the form has to be signed in person.

Forceable wage assignments were done away with by the FTC in 1984.

Hope this helps!

Regards-
Mike

I have looked over the "wage assignment". I did not sign it in person. Everything was done online at the time I applied for the loan, however there is a handwritten scribble where my signature is to be. They will not allow it to be taken in payments either. The wage assignment states it is to be one lump sum payment which would mean I would need to go without a check for one week in order to allow this to take place. I am going to fax it to my attorney and have him look at it before anything else happens. I understand in Florida there are laws regarding how much of the disposable income can be taken at a time. So I will discuss with my attorney this as well. I honestly don't remember the wage assignment being there when I signed the forms to get the loan.

knee

In the meantime fax them a letter (to Sonic) telling them you are revoking the wage assignment.

The fax number should be somewhere in this thread and it can go to Ms. Shandra. She's a supervisor over the supervisors.

If it is not your signature, then your payroll department does not have to honor it. They'll compare the signatures.

With my wage assignment, all that was present was my ssn# and my typed name.

From what I have gathered from resources, a wage assignment has to be signed in person. I'm not sure if payday loans are exempt from this rule, however speaking with your attorney will help.

Regards-
Mike

I spoke to my attorney and faxed him the garnishment. He said that since it is not my signature on the sheet (It states that it is a digital signature) and since I did not sign it in front of the witness, my employer does not need to honor it. He said that I can send SONIC a certified letter requesting that a payment plan be worked out and that I do not want my employer to honor the wage assignment.
Thanks for all of the input. Hopefully I can get this sorted out.

sounds like you are taking the right steps to get this resolved! Please keep us informed! Hope all works out!!!

Knee, follow the words of your attorney. I hope that this problem will get sorted out soon.

I contacted Sonic yesterday to try to work out a payment plan in order to avoid the garnishment, but was told that they do not accept plans and that it had to be garnished. Under no circumstances would they allow or accept partial payment from me. I explained I could not do a full payment and the representative told me that I should have thought of that before I defaulted on the loan. I explained that I did not intentionally default on the loan but that I had a few issues that caused my not being able to pay. He told me that he did not want to hear my excuses and that as far as he was concerned the garnishment was needed in order to be sure I did not skip out on paying them again.
I don't know where to turn at this point. I don't know if it is worth my sending in payments and seeing if they are applied or just letting it go and see what happens next. I know I need to pay, but can't do a lump sum payment.
Any thoughts?

Knee

As far as I know Sonic doesn't even do wage assignment. That's just a scare tatic to get you to pay. They will however attempt to hit your account on your next payday. They'll hit it twice. They'll do this for about 2 months (or until you change your account number.)

They will tell you if you don't pay by Monday, we'll turn it over to our wage assignment department. By them saying that, that means they'll try to hit your account again.

Be protective if you can't afford it. Maybe have your money moved to savings soon as it gets there, or change your account number today.

By changing your account number---I'm not telling you not to pay. Still attempt to pay whatever you can. If that means saving up for 2 weeks and calling them back when the time is right, then that would probably be the best plan.

-Mike

A Bobby Simpson from Sonic just called my employer and told him that legally my company must honor the wage assignment and that if they did not there would be legal reprocussions. My employer is concerned and therefor is telling me it may need to come out regardless of what I want. What can I do? I may call my attorney again and see what he says.

knee

You can tell your employer when they get the information that you did not sign one of those. Tell them you paid the account off. You mentioned that it was a hand written scribble. So that, legally, cannot be accepted as a legal "promise to pay".

Regards-
Mike

Hi Knee

Send a notice to your creditor revoking the wage assignment. Wage assignments should appear legal before it is served to you. If the wage assignment is failing one or more of the legal requirements, you should file a "notice of defense" with your employer. This notice should be sent by certified mail.

"Notice of Defense" is a very powerful weapon by which your employer is prevented from turning over any wages to your creditor and thereby, is forced to use other methods of collection.

Regards
Roxette

Roxette

Do you by chance have a template for "Notice of Defense" letter?

Thanks-
Mike

Sonic payday is being investigated in Canada and the United States. We have had several threats thrown at us and when we state the law they transfer you to every person in the building and they all answer the same. If the script doesn't tell them how to handle customers fighting back, they transfer you or just hang up. I have filed a complaint with the attorney general and the financial institution and have received letters from these places on the status and some of the addresses sonic gives, DON'T EXIST!

Mike

I have a template of the form 'Notice of Defense' and I am searching for it. I will send you as soon as I get it. Or I will get it from the local court also and scan it. Then I will put it over here.

That would be very helpful Roxette. They havent called me in weeks, but I know it is only a matter of time before they do and I wanted to be prepared.

I took out a payday loan with Sonic. They did present my employer with a wage assignment which was taken out by my employer the next payday. My employer did say it was legal. So yes, they have filed wage assignments with employers. They did it with me.

GetOffMyCloud

Sorry to hear that they did that. Although you did take out the loan, and it was due back to them... most the wage assignments that Sonic has on file are not valid because it only has a digital signature or your ssn# stamped on it. It is suppose to be you actual signature. It's also suppose to be signed in person, but somehow the payday loan companies are getting away with this.

Well it's good, at least, that Sonic will not be on your credit report.

-Mike

It did put me in a little bind but Mikey you are right I did owe it to them. I am not complaining. I am just telling people that they do do this and it seems to be legal. I have paid them off now.

Getoffmycloud,

It is great to hear that you have paid this debt off. It just makes one less thing that you have to worry about. I am hoping that I will be able to pay them off soon as well.

I faxed a letter to sonic revoking my wage assignment. I received calls from a lady named Suki at work harassing and threatening me. I told her not to call me back at work, but she called again. I am trying to work out a payment plan, but the seem set against that.

Leslie,

Did Sukie call you after receiving your revocation letter to the wage assignment? Send a cease and desist letter in writing. If they call you after receiving it, you might need a legal counseling.

I just want to thank you for posting this information on this website. I received a wage assignment from Sonic and I faxed them a notice revoking the wage assignment and copied my H.R. and that worked fine. Thanks again!!!!

Wage assignment.

Moderators, woudl you be so kind as to the link to topic in Sonic where wage assignment, and the revocation letters are explained in great detail?

Knee, Basically, the wage assignment you "signed" with sonic is completely bogus. It does not comply with over half of items to make a wage assignment valid. Specifically, you most likely did not sign it in person, nor is it on a seperate piece of paper, with the words "wage assignment " printed in the right place.

As well, Wage assignment is VOLUNTARY and you can revoke it anytime. i learned all this on this forum - it is a lifesaver!

rkai,

You are right with Wage Assignment. Go through this thread, Nash has discussed Wage Assignment and Wage Garnishment very well here-

http://forums.debtcc.com/forums/levy.html

Quote:

i can't tell you what to do...but in my case, i consired that yet another bully tactic...they sent me the same letter and i fired back a letter quoting their illegal practices.
never heard boo again
in fact, the only thing i did receieve was an email at tax time offering me a tax refund loan....can you believe that?

Sonic payday is being investigated. Their parent company is E-Care Contact Centers.

When you call the number listed, it is queued to an individual. I have done some investigating and found that when they answer they answer with a "different name" that they use outside of E-Care Payment Services.

I called once and spoke to a Lynn Thomas. I waited for 2 days, called back and her name was changed to Yvonne Matthews. The individual said that Lynn has changed desks, but I am very good at recognizing voices and this individual was both people.

Don't trust them. Send the C&D letter. If they send it to collections, it will probably be National Capital Collections, which is e-care contact centers.

SCAM outfit, they will be brought down.