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FL Wage Assignment - Head of Household ZIP19



Oncebitten

Sub: FL Wage Assignment - Head of Household ZIP19
Wed, 13/04/2011 13:43

Hello, I am battling ZIP19 at the moment over a Wage Assignment they are holding against me. I haven't received anything from ZIP19 about it ( but I guess it was in the contract ) I didn't know they had done this until my employer sent me a page about it. It says I owe $549 and some change. I haven't paid them anything back and I HAVE sent the "Revocation of Wage Assignment" letter to them along with a copy to my HR dept and the Payroll dept. I got a response back from my payroll dept saying that they would need a "Release" letter from the creditor before they could stop the deductions, I guess in other words the "Revocation" letter I had sent doesn't mean anything. I found out about the letter on here and sent it but I guess that doesn't really work. I don't know. I don't know what else to do. This is an "assignment" not a court ordered "garnishment" and I am the Head of Household in Florida. Why would my job need a "release" letter from them if this is not court ordered? The first payment is supposed to come out of my check in 2 days, I guess they will just get the money then..... :confused:



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OhioGal1
OhioGal1


Debt Samaritan
Posts: 5216
Credits: 76170.396477606

Sub: #1 What you have is a voluntary wage assignment. You are correct, iWed, 04/13/2011 - 13:43



What you have is a voluntary wage assignment. You are correct, it can be revoked at any time, hence the "voluntary" part.

Share this with your employer. :)
[quote]
Payday Loan Defendant Settles FTC Charges; Illegally Tried to Garnish Borrowers' Wages

One of the owners of a payday loan and debt collection operation has agreed to settle Federal Trade Commission charges for his role in a scheme that illegally tried to garnish borrowers??? wages and used other illegal debt-collection practices.

According to the FTC???s complaint, the defendants, doing business as Ecash and GeteCash, offered loans to be repaid from borrowers??? upcoming paychecks. Online loan applicants checked a box indicating their agreement with loan terms, including an inconspicuous ???wage assignment??? clause that said that their wages would be garnished to cover delinquent loan payments. Then, using the name LoanPointe, the defendants attempted to collect on the offered payday loans.

Federal law allows federal agencies to require employers to garnish employees??? wages without a court order when the employees owe the government money. According to the complaint, in letters to employers that sought garnishment of their employees??? wages, GeteCash and LoanPointe tried to pass themselves off as having the same collection rights as the government.

The FTC???s complaint also alleges that GeteCash and LoanPointe falsely stated that consumers knew their pay would be garnished and had an opportunity to dispute the debt. In addition, GeteCash and LoanPointe allegedly violated the law when they told employers and co-workers about consumers??? debts without their consent. (See http://www.ftc.gov/o pa/2010/04/getecash.shtm)

Under the settlement order, Mark S. Lofgren is banned from collecting debts through wage assignment. He is also permanently prohibited from misrepresenting facts in order to collect a debt; contacting a consumer???s employer in trying to collect a debt, unless he is seeking location information or has a valid court order of garnishment; and disclosing a debt to any third party. In addition, Lofgren is barred from violating the Credit Practices Rule and the Fair Debt Collection Practices Act, selling or otherwise benefitting from customers??? personal or financial information, and failing to properly dispose of customer information. The order imposes a $38,133 judgment that is suspended based on his inability pay. The full judgment will become due immediately if he is found to have misrepresented his financial condition.

The FTC also dismissed Benjamin J. Lonsdale and James C. Endicott as defendants in the case. Litigation continues against Joe S. Strom, LoanPointe, LLC, and Eastbrook, LLC, also doing business as Ecash and GeteCash.

The Commission votes to dismiss Lonsdale and Endicott from the complaint were 5-0. The Commission vote to file the stipulated final order with Lofgren was 4-1, with Commissioner J. Thomas Rosch voting no. The documents were filed in the U.S. District Court for the District of Utah, Central Division.

NOTE: Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.

To file a complaint in English or Spanish, visit the FTC???s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC???s Web site provides free information on a variety of consumer topics. [/quote]

How to Deal with Unlicensed/Illegal Payday Lenders - Step by Step Instructions

I am not an attorney. I am not offering legal advice. The information and ideas I share are my opinion only and do not necessarily reflect the opinion(s) of the owners of this website.


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