Wage garnish for a payday loan

Hi sharaylewiss

In Texas, wages can be garnished only in case of student loans, alimony and child support.

I will suggest you to tailor a debt validation letter as per your needs. Contact them in writing. If you are speaking to them on the phone and it is legal in your state, record the call. collection agencies say a lot of things that are in violation and they are quite aggressive. Send them a DV letter and they will leave you alone.

Do not give your personal information in any case until your debt has been validated. Talk to a consultant here. They will be most helpful.

Regards
Roxette

I had a company to garnish $187.00 from my check. I did not woory about it because i was going to pay them anyway.

what if the company refuses to wait on the DV letter?

If your DV letter is not honored, you have the legal right to dispute the wage garnishment. Have you sent the letter through certified mail with return receipt requested?

Wage garnishment is legal only after you have been served a notice and have appeared in the court. You can always dispute it if your debt is not validated by the company.

So, when my wages were garnished, it was done illegally? I did not go to court, i received a notice from my HR saying it would be garnished,and i live in a state where they only garnish for child support, back taxes, and alimony. (i live in TX) :shock:

Did you sign for a voluntary wage garnishment? It must have been stated while you signed the agreement deed.

Voluntary wage garnishments are not legally honoured and you are not required to appear in the court also.

hello, i've gotten involved with one too many payday loans online, and quickly. now i'm in a financial state where i'm unable to repay the loan in full. as long as i'm making some type of payment does a company from PA have the right to garnish my wages (i live in sc)? i'm asking because almost all of the companies are will to work with me instead of this one and i recieved a letter from them saying they will get a court order to garnish my wages and recieve their payment in full.

lanesha

Under the laws, wages cannot be garnished without a court hearing. Legal summons must be served to you 20 days before you show your appearance. Check your local county if legal papers have been filed against you. Some companies use fake papers giving it a legal shape. Also, check the latest copy of your credit report for a legal garnishment. Let us know so that we can move further from that point.

Also Lanesha,
No money can be takn from your check until you have recieved a copy of the judgement from both your employer and either us mail or process server. After receiving those, you have a reasonable amount of time (usually one pay period, but no federal law mandates that, it still will be at least a week)to contact the creditor or file paperwork at the court to have the garnishment reduced. Good luck!

I got a notice from my HR person telling me that my wages were going to be garnished from the State of California Franchise Board for $363.00. No notice prior to that or contact from anyone. Is it illegal for a court to not have you served? This was for a traffic ticket back in 2002.

Sweety the government does not have to follow the same rules as everyone else. But it is worth checking into...what state are you in?

If you got a notice from your employer then you bet you'll be getting one in the mail real quick. The creditor is not required to contact you prior to filing the judgement..Also..I'm sure that you'll be getting served pretty quick, too. I'm sorry, but it doesn't sound like any laws have been broken here. At least you won't have to pay it all at once..It'll be broken down over 90 days, those payments will be pretty low.

All you need to do is send your HR a letter revoking the wage garnishment. I would also contact the company and see if there is something that you can work out. It worked for my sister.

You CANNOT revoke a wage garnishment. A garnishment is a legal order. A wage assignment you can revoke at any time...It's your right. A compnay who is not a sub-prime lender WILL NOT use a wage assignment, they will obtain a judgement to garnish..Sandy, i deal with this for a living, if you need any help, register and pm me.

I got a call from payday-avenue about my wages being garnished if I didnt pay the amount I owe to them. Its now at $485 and I am willing to pay them the amount in full. Does that PDL place have the right to garnish my wages and letting my boss know about it. Also I need help on finding the most a place can charge me. Oh the guy I talk to at payday-avenue is a complete jerk. Starts with Michael.

Is payday-avenue an online lender? If so, they aren't going to garnish your wages. They may try to send a wage assignment, but that can be revoked in writing from you. Online lenders seem to think they can threaten people with garnishment. They wouldn't dare step foot into a court, the judge would have a field day with them especially where most of them are violating the laws.

I signed a Wage Assignment with Instant Payday and when I defaulted on the loan, I immediatly sent a letter revoking that assignment even though they said it was irrevocable.
My question is, In order for the Wage assigment to be valid, doesn't it have to be signed in person anyway?

Payday-avenue is a online lender. That a PDL place where you have to pay the amount in full every 2 weeks. So they cannot threaten me with trying to do a wage garnishment. But whats a wage assignment and would that involve my boss knowing about it. Payday-avenue is not even in the US. Its in Malta and I have to pay them through Western Union but something alarm me a lil bit. The code city they gave me was ECare and the code state is DE. I dont know bout if anyone that been thru payday-avenue knows anything about it,write back and I need to know the most interest a PDL can charge in PA. THX

djeagles,
your boss would have to know about it if you sent a wage assignment revocation letter, there is no way around that, sorry. I know it's embarrasing, but let me tell you this...We HR people have stacks of paperwork on everyone..we don't remember who had what problems..and everyone has problems. I deal with 350 people, and more than half of them have some sort of garnishment or legal issue.

I work for a smaller company only 10 people so boss would defintely remember. Yes it is embarrassing but if it has to be done, then it has to be done. But i will try my hardest not to have it go that far. But can they call my job asking for my boss. LMK.

They can call and ask for your boss, but under federal law your boss cannot give out any info about you..Not your age, race, gender, income, debt situation..Nada.
As long as you are paying them I seriously doubt that they will even try to use the wage assignment..Keep in contact with them and uphold your end of the bargain..You should be just fine.

finsfan,
I thought a wage assignement had to be signed in person for it to be valid...is this true? Or does that have something to do with wage garnishment.

That's a tricky one..Prior to 1986, they had to be signed in person with a witness's signature. Now it doesn't even matter, because the pdls count on payroll depts not knowing what the heck they are and simply honoring them. Now they can be revoked by you at any time, whether it's digital or personal...BUT..if payroll doesn't get them in a certain format, we can just throw them out the window anyway! They have to say "wage assignment" in bold type at the top..It has to have the creditors name and address and the amount of debt in the first 3 paragraphs, your signature must be clearly visible, and there has to be a witness signature.
These things are a freakin' joke. All they are is an IOU. A garnishment is different, because it goes through the court and is taken out in installments over a 3 month period. An assignment is taken out all at once, no matter how big the debt is.

I spoke to a Mike today from Payday Avenue asking him if I can make a $100 payment against what I owe on my loan to be paid on Wednesday. He said whatever amount you send it still will not stop the process of them contacting my employer and trying to get a wage garnishment against me. I in turn filed a claim with the PA SAG against payday avenue with his name as the person who made the claims. Its not the money I owe Im filing the claim on its the harassment part of him threatning to do things that agaist the law and against the fdcpa. Should I file a suit aginst them for harassment after their suit comes in for me to show up in court. LMK

Also ... is good for consolidating PDL. I call them and they were nice. Number 866-803-****.

Promotional post edited - Mike

The phone number is 800-883-****.

Promotional post edited - Mike

I don't know why these payday lenders insist on calling a wage assignment a garnishment. I know they know the difference. I think they're counting on you not knowing the difference, and not knowing that you can revoke an assignment.

djeagles, a lot of companies don't allow voluntary deductions, which is officially what a wage assignment is. A lot of smaller companies in particular don't do them because of the extra paperwork. A company simply doesn't have to honor them..period. You should talk to your boss about this, no matter how embarrasing. If they do allow voluntary deductions, then get together the revocation letter.

My employer is going to garnish my wages for the next 4 weeks for $111.00 for Payday Avenue. They told them that they can do this and they are going to do it. I can't afford that amount for that long...can they really do that?? HELP

Dale, send a letter to revoke the wage assignment to your employer as well as the loan company. Once the company has received your written request, they should not deduct money from your account. Wage assignment is voluntary as mentioned in the contract. Read it once again and see if you have signed for it. The link below will explain the normal process of wage assignment put in front of the people. If they don't abide by it, you have the legal right to take actions against them.

Are you sure that wage garnishment was not mentioned in the contract? And did you sign it in person?

It does not matter if you signed the contract in person or not..All wage assignments can be revoked at will by you at any time. Period. Garnishments can't, of course,or the rare event of a court ordered wage assignment (yes, there is such a thing) . Anything an online lender would use would be a general wage assignment, nothing court ordered.

If you need any help with this, please feel free to ask me any questions.

Lanesha,
The state of SC is a NON-garnishment state.No wages can be taken from your paycheck not even a court order from another state.The only thing that is garnished in this state is child surport,student loans,IRS(tax time),unpaid doctor bills(tax time).

Yes, can you go to jail over payday loans. I have several and I am scared to death about this. Can someone please help me.

we no longer have debtor prisons in this country. You can not go to jail for not paying a loan. certainly for not paying what may be an illegal loan.

Thank you for your answer kaz. I have been worried sick about going to jail. Can they actually garnish your wages here in texas. I thought only certain things were allowed to be garnished here.

in order to garnish wages they would need a court order. Are you talking about store front or internet loans?