Sonic Payday--Wage Assignment Process

Sonic payday states about the possibilities of wage assignment in the loan agreement. When you have signed this paper, you have agreed to their terms and conditions if you default in making payment to them.

In these voluntary wage assignments, your employer will be demanded a portion of your weekly wages until the existing debt gets paid off. The whole process does not require any backing from the court. Those creditors who issue a valid wage assignment does not have to obtain a court judgment before your employer is notified.

A wage assignment is termed legal if it fulfils the following requirements:

• Wage assignment should be served on a separate piece of paper and should not be a part of the contract.
  
  
• You need to sign this paper in person at the time of the agreement with your social security number, your name, the amount of the debt, the rate of interest, and the date when payments are due.
  
  
• A copy of this agreement should be available to you also.
  
  
• Wage assignment should be clearly written at the top of this document.
  
  
• It should be served to your employer in the proper way showing the number of days you have defaulted in making payments. A copy of the wage assignment should be included along with it.
  
  
• 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.
  
  
• This agreement should keep in view the statutes of limitations in your state.
  
  
• The assignment is valid for 3 years. But in between, if you have changed your employer, then it is valid for 2 years.
  
  
• The wages assigned should not exceed the allowed amount under the wage deduction act
  
  
• You cannot have wage assignment if you are earning wages from the State or local government or a school district.
  

Kathy

Following letter can be used for revoking a wage assignment.

The date
Your name and address
The name and address of the creditor
Your account number with the creditor

Dear Sir or Madam,

I hereby revoke your right to use the wage assignment I signed on (The date you signed the wage assignment agreement). You no longer have my permission to use this wage assignment.

Sincerely,
Your signature

Kathy

Also, since you didn't sign the wage assignment in person, it is automatically void. Most of the wage assignments they have, aren't even signed and faxed back to them. They just use your SSN# as proof you took out the loan. This will not work.

Regards-
Mike

Are you sure if you didn't sign in person, it is not legally binding?

Hi Summer,

Welcome to the forums.

A legal wage assignment has to be signed in person before the creditors can take any action. Other points to be specified in a legal wage assignment have been mentioned at the above post.

If you have been served a wage assignment that has been generated from a computer, you have the federal rights to revoke it.

Regards
Roxette

I am trying to work out a payment plan with them but they went ahead and sent an email to someone in my payroll dept. asking to verify my ssn# (which they included in the email) and notifying them that I owe money. Isn't this illegal. How can I get them to leave me alone at work?

Hi Summer

Does the SSN# that has been provided to your payroll dept. matches with your one? Most of the companies use the SSN# to prove that you took the loan and are seeking further actions.

Even if it is a voluntary wage assignment, it should be complied with legal requirements. You have the right to revoke it and inform about this action to your payroll dept.

Regards
Roxette

Is it illegal for them to submit a wage assignment to
my employer that has a digital signature on it and
an amount I did not agree to???

Paula

Welcome to the forums. Yes, technically it is illegal for them to use the wage assignment with a digital signature on it. They claim that the verbal agreement over the phone is all they need, however they only submit the wage assignment to your employer. Wage assignments also have to be signed in person, along with a witness. Sonic does not follow any of the wage assignment laws.

Regards-
Mike

I would like to confront them with this issue. Do I put it in writting. they are claiming they need an answer today. They also deposited 400.00 that they should not have and when I told them about it they told me they could not reverse it and I would need to pay the fee. So I owe them for 2 loans because they did not pay atttention of the first loan that it had cleared the bank. I did do a re-loan but they never deposited it until the 1st one cleared. Is that just my tough luck??? AHHHHH

paulaa

Yes, put it in writing, certified mail, return reciept requested. If you search here on the fourms (they're is a link on the lower left hand side) you will be able to find am address for Sonic payday as well as many other helpful insights to dealing with payday lenders.
As to the reloan, i'm not sure what you could do as far as that goes. you said you DID reloan, but it sounds like it was thinking that the other one had not initiated or funded?
I know that doesn't help you now. Even if you used the 400 dollars that Sonic is unwilling to reverse - you're looking at a little over 100 dollars just because they don't do cancels! This is a good arguement as to why you should decline any lenders offer to refinance you to get you current, it never brings you current, it only prolongs the situation, all the while you are paying fees that could have gone toward paying down the original amoutn due.

Good luck to you, you are not alone! :)

Paulaa

Put every correspondence in writing. Send your letter through certified mail with return receipt requested. You will be able to keep a track of all your information sent to them. If you don't get positive results, you can take some legal help.

The company is trying to put you in deeper financial troubles by giving another loan at this time. Send a letter to the customer care cell and request them to cancel this loan. But this way, they might charge you a pre-closure fee. So, in both ways, you are required to pay the fees.

Regards
Roxette

I have had the same issue with Sonic. They never sent me written notification or did they serve me with anything involving Wage Assignment. My employer however does not honor these wage assignments. What is my course of action?
Sincerely,
Tina

Tina,

If possible try to pay the amount back and get rid of this problem.

Also inform your payroll department that they might try to withhold a portion of your wage and you did not authorize them to do it.

Thank you for your helpful advice. Is it recommended that I also send them the letter revoking wage assignment, even though my employer is not going to honor it?

Yes send Sonic a wage revocation by certified mail with return receipt. With the return receipt, you have proof they have recieved the revocation letter.

From my understanding i was told there is no more sonic payday. Are you talking about cashtransfercenter.

i need advice according to the wage assigment, they did not follow over half of the laws set forth. Not only that what makes me mad is that i have been in constant contact with them, setting up somekind of arragment. They told me in an email today they was sorry but they could not stop the garnishment at this time. So i guess i will make a copy of the law and inform payroll what they are trying to do. I want to know can i revoke this wage assigment.
Thanks

email them today that you did not agree to a wage assigment, and that if they maintain that you did, you are hereby informing them that it is immediately and permanently revoked.

Downandout,

Also inform your payroll department immediately not to honor this voluntary wage assignment. E-mail it to them and also fax it to them today if you can. Also, send them a letter via certified mail with return receipt revoking the wage assignment. This way you will have proof that they received the letter. Sonic is a hard company to deal with, file the proper complaints with the appropriate agencies. Do a search on Sonic in the forum and you will find valuable information that way. I have filed several complaints against Sonic because they have broken state and federal laws in my case. I just received a letter from the consumer protection office in PA that they are looking into the matter further.

What is the notice of defence? What should it say?

Yes I would like to know what the notice of defense is also? What should it say? I'm going through this horrible ordeal as well and Have already prepared the Letters stating the revoke of my wage assignment; however, I do not know what to do for the Notice of Defense letter to give to my payroll department. Anybody know what should be included in the letter? Thanks

The wage assignment is voluntary and most payroll department will contact you first.

I had to sign a Wage Assignment when I took my loan out with instantpayday. They emailed the form to me to sign and I had to fax it back. When I defaulted on my loan I was a bit nervous about that piece of paper. My credit counselor told me to send a letter revoking the assignment by certified mail. So I did and I printed out the laws and highlighted the part that said it had to be signed in person. They even put in the assignment that it was irrevocable. I haven't had any problems with them and they are in my consolidation program.

Payroll departments are not REQUIRED to let you know about the assignment first, send a revocation letter to any pdl company you have

I am having the same problem with Cash Transfer Centers but my wage assignment doesnt have a date nor does it have an amount just my name typed and my ss #. what should my letter of defense to my payroll dept say?? And what if I am the Payroll dept. I was just promoted 1 week ago??

Hi Ali,
Well..Since you ARE the payroll dept, you don't have to honor it. Is there anyone else in your dept? I think it would look better if someone else is involved. First off..Find out your companies policies on voluntary deductions. many companies just don't allow them, which solves the whole thing right there. Second, this assignment does not follow proper protocol and should be void anyway. Write a letter..Don't address it to yourself..Write it to your sup if you have to..Saying that on such and such a date you do not authorize either wage assignments or any and all voluntary deductions. That will satisfy that. Also, write a letter to the creditor saying the same thing, as well as pointing out the fact that wage assignments much follow a certain standard..A. wage assignment much be written in bold type at the top. B. Your signature must be clear, as well as a signature of a witness. C. It must be dated and D. It absolutely MUST have an amount in the first 3 paragraphs, as well as the creditors name and address.

Don't worry, this will be a breeze. This is the most poorly done assignment that I have heard of. And..Since the mid-eighties you have the right to revoke the wage assignment at will, as long as it is not court-ordered. (yes, there are court-ordered wage assignments, not to be confused with garnishments)

Congratulations on your promotion! I do HR/payroll myself, and although very stressful and demanding at times, I really do enjoy it. Any more questions, I'd be glad to help you out.

Oh thank you so much this is what I mailed them after I sent the revokation letter:

Dear Sir or Madam,

Your DECLARATION OF WAGE ASSIGNMENT is revoked by myself Alicia Caldera for all the following reasons:

Technically it is illegal for you to use the wage assignment with a digital signature on it. You claim that the verbal agreement over the phone is all you need, however you only submit the wage assignment to your employer. Wage assignments also have to be signed in person, along with a witness.

If I have been served a wage assignment that has been generated from a computer, I have the federal rights to revoke it.

Wage assignment should have the following points clearly stated and should meet the required revocation language. Otherwise it will be a violation of the federal and state laws. If the wage assignment is not meeting the following legal requirement, I have the right to revoke it.
(Please see below)
?? 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. (Which I was NEVER sent)
?? I need to sign this paper in person at the time of the agreement with my social security number, my name, the amount of the debt, the rate of interest, and the date when payments are due.
?? It should have been served to my employer in the proper way showing the number of days I had defaulted in making payments. A copy of the wage assignment should have been included along with it.

I have already filed a letter of defense with my payroll department explaining to them that I have revoked this wage Assignment with your company and they are not to honor it.

Once again I am informing you to CEASE and DESIST from contacting me or my payroll department about this matter at work and only contact me at home (805) 524-5319 or by mail.

I have filed several complaints against your company because you have broken state and federal laws in my case. I just received a letter from the consumer protection office in PA that they are looking into the matter further.




Sincerely,


Alicia Caldera

That is absolutely perfect!! You will have no problems with this one!

I guess I can type up the letter of defense to my old supervisor, she is the one they contacted before. Since we are a family owned business I am the ONLY opayroll person. Friday they called my company and left me a message abpout the paperwork but I havent returned the call what do I tell them if they call back. I am the payroll dept??

LOL, that will drive them absolutely WILD! what a hoot! Yep, It's the truth; that assignment is illegal and you don't have to honor it. Shucks, I'm almost jealous..I would have SUCH a good time with this.

I just typed this up and I back dated it to the day they got notification from Cash transfer. Does it matter what date is on the revokation letter?

Volutone Distributing
Payroll Dept.
Attn.: Courtney Langdon

Courtney,

In response to the Wage assignment that you received from Cash Transfer Center on or around April 2006 I did not authorize either wage assignments or any and all voluntary deductions from my weekly check nor my monthly commission. I there fore am not authorizing anything. They have bee mailed notification from myself that I revoked the Wage assignment because it was done illegally.

Thank you,

Alicia Caldera

that's perfect. I don't really think it matters what date is on there, but back-dating it probably is best. You've got all your bases covered, nothing to worry about now.

wwweeww thanks for all your help I can actually sleep now that I found this SUPER HELPFUL SITE...Last qestion do I send the certified letters to both address the Canadian and the one in PA

I would definitely send the letter to both addresses.

And you're very welcome..Glad I could help.

Does Anyone have any idea how I can reach some of these people.

Cash Today Loan
Paycheck Today
Cash net USa
Paragon
B & L Marketing
Magnum L
One Step Cash
International
ICS
I would greatly appreciate it.

Thank you

I know that Cash Today is out of Reno, if they are the same outfit I'm thinking of. But beware, they're nuts and will call you three million times a day to tell you you a gazillion dollars off a $200 loan...

Thank you kscornell Fortunately I have not heard anything from them yet. So I am not sure what is going on I am trying to find address to the ones I owe money to send out payment arrangements. I just dont want to avoid them because I am sure that would be worse but not hearing from them makes me nervous.

I am almost positive ICS does not exist anymore..Have you defaulted with them? Are they still debiting you?

They are not debiting me because I closed my account out because of some issues. I am wondering if I should wait until I hear from the companies or send them something in writing before they call.

What other pdl companies is ICS affiliated with?

ICS is also Interim cash and route66 for sure..I know that there are others.

Announcements
Proud to Announce to CashNetUSA Customers
As of Sept. 18th 2006, CashNetUSA has been acquired and is a subsidiary of Cash America International. Cash America International, Inc (NYSE: CSH) is a publicly traded company providing financial services to individuals in over 896 storefront locations. The backing of a strong publicly traded company like Cash America International Inc., will help CashNetUSA continue enhancing current services and offerings to our customers and further establish our place as a leader in online short-term lending solutions.

CashNetUSA online services will continue as you know them today without any changes.

CashNetUSA
P.O. Box 06230
Chicago, IL 60606

Customer Service: (888) 801-9075
Collections: (888) 801-9078
General Fax: (866) 326-5265

I wonder if this means they are now not allowed to do buisness in Arizona??

Could be they are just getting around the law and "renting a bank" Ohio has banned the "rent a bank" scheme because this is how some pdls get around the laws. They pay a bank a fee so that they can use their license to lend in a particular state.

Sonic is a beast. I have much sympathy for anyone owing them money. I went through it last year and it was a nightmare.

Most payroll depts will not honor it but some will. At any rate it is Voluntary, thats the key word. So tell your payroll dept that you do not want them to send money.

When I was dealing with Sonic they never had anything on file about an assignment but they did say they were going to contact my Employer to see if "they wanted to work with them on it".

Yes it is illegal for them to divulge personal info. Nothing about Sonic is ethical or sympathetic. They want you to pay in full because they want you to keep reloaning with them.

You will get through this, hang in there and read the full Sonic thread.

I've received the letter from my payroll department about Cash transfer centers trying to do wages assignment on me yesterday 10/31/06. I called my payroll this morning and told them that i'm not authorized them to take any money from my paycheck. My payroll department said that they can't do anything about it because cash transfer centers did sent my payroll the letter stating that i did borrow from them along with my digital signature. I work for the county government (sheriff department)and this is sad that they won't be able to help me. Anyway, the lady that works in payroll department was really rude when i talk to her, she kinda give me the whole lecture over the phone and she was real loud on the phone. I guess now everyone in the payroll department know what happen to me now. This is so embarrased. What should i do now??? Helppppppppppppp....Oh, by the way she (payroll) saids that she won't stop it not unless i call and talk to cash transfer centers, have them fax the paper to her, then she'll stop. Does this make any sense at all??

I thought for wage garnishment it has to go through court? what state are you in?

What does payroll want you to have cash transfer centers fax, the loan agreement or what? Like you said, the wage assignment is voluntary and it can be revoked at anytime. I was even told that an e-signature or digital signature(whatever it is called) has to be done in front of a witness or it is no good.

Contact her supervisor, everybody has one.

Also, send a letter revoking the wage assignment, to Cash Transfer Centers as well as your payroll department.