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Can online payday loan companies garnish your paycheck?

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Can online payday loan companies garnish your paycheck. I have 7 outstanding and want to get out of them and the only way is to close my account, call them and set up payment arrangements.They say that if you signed you are bound by the laws in their state. They don't say they will garnish my check but I was wondering if they would. Please let me know what I can do.




SUEBEEHONEY70

Posts: 4590
Credits: 65464.1

Sub: #1 jazzy - you've come to the right place for help! Many of us hav
Thu, 07/19/2007 - 10:01

jazzy - you've come to the right place for help! Many of us have been in your shoes, you are not alone.

If you can provide us a list of the PDL companies you are dealing with, what state you live in, how much you borrowed from each, and how much you have repaid to each one, we can help you work out a repayment plan to get out of this situation.

To answer your question, internet payday lenders most generally cannot pursue you legally for defaulting unless they are licensed to do business in YOUR state. There are a couple of states (PA is one of them) where the law has a loophole in it that allows out of state lenders to lend into the state, but that's not the case everywhere.

The only way they can garnish your wages is if you signed a wage assignment agreement. However, to be safe, you are best to send them a letter, via certified mail, return receipt requested, stating that you are revoking their ACH authorization to debit your bank account, and that you are also revoking any and all wage assignment agreements they may have with you. Also state in your letter that you will not communicate in any manner other than in writing, and that they are to cease calling your home and your work.

Closing your bank account may be the only way to stop them from debiting your account. Talk to your bank first, however, and find out what their policy is on ACH debits - see if there is any other way to block these companies PERMANENTLY from debiting your account, so you can work out payment arrangements with them and regain control of your money.

A journey of a thousand miles begins with a single step...and becoming debt free is a journey!




finsfan13

Posts: 6933
Credits: 65210.65

Sub: #2 The good news about Pa, though, is that they are a non-garn stat
Fri, 07/20/2007 - 17:55

The good news about Pa, though, is that they are a non-garn state for consumer debts!! :D

Sue's advice is golden..One thing a lot of people don't know, however..It is more important to have your HR dept have a copy of the letter than the PDL..In fact, you don't even REALLY have to send the PDL company a copy at all! (Do it anyway!) Even though wage assignments are indeed legal, it is always your right to revoke them.

26.2
Detroit Marathon, October 2009




Sassnlucy

Posts: 2697
Credits: 31714.103741266

Sub: #3 Yeah even if you revoke it with the company, they will try to us
Fri, 07/20/2007 - 18:02

Yeah even if you revoke it with the company, they will try to use it anyway so make sure you send a copy and revoke it with your payroll department FIRST!!! :)

So what, I'm still a rock star...I've got my rock moves and I don't need you....and guess what, I'm having more fun now that we're done!!!!!




sfate
Posts: 39
Credits: 2297.15

Sub: #4 Wage Assignment
Wed, 07/25/2007 - 11:27

How do you know if they have a wage assignment? I live in NC and I was wondering if your check can be garnished in NC for an unsecured loan from these online payday companies. I know when NC had store fronts they couldn't.




Sassnlucy

Posts: 2697
Credits: 31714.103741266

Sub: #5 Tell us what companies you are dealing with, and more than likel
Wed, 07/25/2007 - 18:01

Tell us what companies you are dealing with, and more than likely we can tell you if they use wage assignments. If you are dealing with Sonic Cash or Payday Avenue, they use them religiously.

So what, I'm still a rock star...I've got my rock moves and I don't need you....and guess what, I'm having more fun now that we're done!!!!!




Unregistered

Sub: #6 Wage assignment
Thu, 07/26/2007 - 06:21

I the names and need desperately to know if they have wage assignments.
United Cashloans
Web payday
quickest cash advance loan-MTE
One click cash
ameriloan
Magnum Cash advance
Nationwide cash

Please let me know




2nband

Posts: 2282
Credits: 46884.228087159

Sub: #7 In NC they cannot do anything without a court order. Do send th
Thu, 07/26/2007 - 07:27

In NC they cannot do anything without a court order. Do send these companies a letter stating that you REVOKE your authorization to debit your account, contact your employer, place of employment, your references and any wage assignment. Take a copy of these letters to your bank for proof that these companies were notifed and to your payroll department. Might be a little embarrassing, but a little embarrassment now compared to a lot later on. Even though they cannot do this, better to show that you have revoked your voluntary wage assignment than chance it and someone screw up your check. Also payday loans are prohibited in the state of NC! These people cannot do anything to you, other than harrass you, but that is the most they can do.




2nband

Posts: 2282
Credits: 46884.228087159

Sub: #8 Forgot to add, I live in NC and went through all this at the fir
Thu, 07/26/2007 - 07:47

Forgot to add, I live in NC and went through all this at the first of the year. Hang in there!!!




sfate
Posts: 39
Credits: 2297.15

Sub: #9 Wage assignments
Thu, 07/26/2007 - 08:25

Thank-you that was great advice. I don't remember signing any wage assignments. So, they will contact my references? I have closed the bank account already and rec'd a call from Webpayday today but I didn't answer. Could you tell me what a wage assignment looks like? Also, can I email them to set up some type of payment arrangements? This wage assignment thing is really scaring me. Did you have to turn in a wage assignment for the company you worked for?




2nband

Posts: 2282
Credits: 46884.228087159

Sub: #10 In NC payday loans are prohibited. How much have you borrowed f
Thu, 07/26/2007 - 08:52

In NC payday loans are prohibited. How much have you borrowed from these companies and how much have you paid back to them?

If I were you, I would tell them that the only way you will communicate with them is via email or USPS. This way you have everything in writing. Also file complaints with the AG and the BBB.

Do not be afraid of a wage assignment. Just send the revocation and make sure your HR/Payroll department has a copy of your letters showing that you are not allowing them to do a wage assignment.

I was not really worried about anything happening as far as my loans went. I had found this site and had done a lot of reading and question asking and learned what they could and couldn't do and they can't do anything!!!! None of these companies are licensed in the state of NC. They are not following NC laws, which they have to regardless of what they say to you. Do not let them bully you or threaten you and they will try, but do some reading and see what kinds of things they will try. Knowledge is a powerful weapon and the more you know the more you are able to stand up to these people.

As far as trying to contact your references, yes they might and they might try to contact your work. Although it might be a little embarrassing, talk to these people and explain what happened and you might be surprised as to how much support you have and how much these people are willing to help you out.

Get your letters done, get copies to your bank, file your complaints and relax a little. It is time to take control of things instead of letting these people control you! It will all work out, trust me. I had like 6 pdls and even though I lost a lot of money, but did get one refund, I learned a lesson and will never use a payday loan again, but I am now in control of my finances and you can do it too. :wink:




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