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Wage Assignments/BEWARE

Date: Wed, 08/08/2007 - 21:53

Submitted by anonymous
on Wed, 08/08/2007 - 21:53

Posts: 202330 Credits: [Donate]

Total Replies: 11

Wage Assignments/BEWARE


I am writing based on my own personal nightmare with a "voluntary wage assignment" with my company,, this was an Online installment loan in Illinois that was charging outrageous interest rates at $8.73 per DAY, I tried to work with the company to no avail,, well it went to their corporate office and they instantly sent the "voluntary wage assignment" to my employer, which is a large company and the main office is in Rhode Island, and after going round and round with the legal department I learned some very interesting information, upon finding out the installment loan company had submitted to my employer the voluntary wage assignment as a "garnishment" which by the way states you must sign "in person", unfortunately everything I did with this company was via fax, never went into the office personally, but under the line where I signed the voluntary wage assignment it says I received a copy IN PERSON,, didn't think anything of it at the time,, well a LONG story short, I emailed the legal dept for my employer over and over again the laws for the state of Illinois and the end result(after the documents were reviewed by the supervising attorney) is this is a legal document, they cannot and will not revoke it, even though I sent all the appropriate paperwork to the "creditor" via registered mail/return receipt requested unless the creditor agrees to revoke it, I called the creditor and made payment arrangements and they agreed to fax something to my employer,, but if they had not agreed to do that my employer had every legal right to "garnish" my wages without a court order,, so people,, please beware these wage assignments are legal and binding and your employer WILL garnish your wages, I am not trying to scare you, the response I received was that if the employer did not honor the "assignment" then the employer could be held responsible for the entire debt. Do your research,, and don't always believe what you read, you need to get the creditor to release it and then they no longer have any right to attach your wages, I was fortunate that the creditor agreed to fax something to my employer which they did, although I have not paid what I agreed, I have until the 28th to pay $800 on a $1200 loan which I have already paid $700,, yes I would love to file bankruptcy on it,, but ya know what? I should of read the fine print cause it really came back to "BITE ME IN MY BIG BUTT",, just a word of caution,, send the Assignment revocation BEFORE the assignment gets to your employer,, it might help, it might not, I dont know cause I waited until it was almost to late!


cindysunshine, normally, one of the first pieces of advice is to revoke any wage assignment you may have signed with the pdl. From my understanding - and someone correct me if I am wrong - is that a "wage assignment" is voluntary by your employer vs a "wage garnishment" which the pdl would need a court order to get. Your employer stated that a "wage assignment" is not voluntary? I'm confused because you keep referring to "garnishment" in your post. Whenever someone comes to the forum for help, we do advise them to revoke any wage assignment they may have signed before the pdl has the opportunity to send it to their employer, and we also advise them to give a copy to their payroll department. I'm sorry this happened to you at all. However, I'm still confused as to why your employer stated it is not voluntary. They did not get a court order to garnish your wages, did they?


lrhall41

Submitted by cannr on Thu, 08/09/2007 - 12:40

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As far as i know , a wage assignment is strictly voluntary and revokable at any time. I have already spoken to my HR manager(just incase) and he told me that NO WAGES ARE TOUCHED WITHOUT A COURT ORDER.
I believe that to be true. From all I have read and learned, these companies can not touch your wages without first getting the proper legal documents to do so. Please someone correct me if I am wrong


lrhall41

Submitted by kashzan on Thu, 08/09/2007 - 12:52

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kash, I'm hoping goudah or sass or someone will come along (anyone?) and post thier opinion/knowledge on the subject.


lrhall41

Submitted by cannr on Thu, 08/09/2007 - 12:55

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First off - The very point of a wage assignment is that they are VOLUNTARY.

Second off - Once the wage assignment has been sent to the employer it cannot be revoked. It can only be revoked BEFORE it is put into effect. Otherwise the OP is right in that the creditor would have to agree to stop it.

Again - It can be revoked before it is sent to the employer. You need to keep a copy in case the company still tries to put it through, so that you have proof that is was revoked before they tried to implement it.

This posted didn't revoke it before it was sent to the employer, at which time it can be too late to stop it.

Also, if you are worried about this, check into your state laws. Many states outlaw wage assignments used for security on a loan.


lrhall41

Submitted by goudah2424 on Thu, 08/09/2007 - 14:01

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Thank you! I was trying to get the point across in my post that one of the first pieces of advice is to revoke any wage assignments before the pdl's have a chance to send it to an employer. I went back and re-read my post to be sure I was clear on that. I believe I was. And for you to come and clarify it in much more detal is wonderful. I think most people know (by the advice given - which is usually informed/researched advice) that they need to revoke any wage assignment they may have signed ASAP and give a copy to their employer. However, now that it has been stated clearly, it's more knowledge for those who weren't sure or were unaware.


lrhall41

Submitted by cannr on Thu, 08/09/2007 - 18:32

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Very good information from everyone. In my personal case, a payroll supervisor told me that the only "garnishments" they honor at my company must come from the courts--with the exception of gatrnishments for federal or state taxes.
And when Sonic tried to go after my wages, payroll didn't want to do it and sent it back! And it got to the point, according to this supervisor, where they were getting so many from Sonic and sending them back, that Sonic just stopped going after my coworkers, period.
So I also think it depends on the corporate culture, imho.....


lrhall41

Submitted by kscornell on Thu, 08/09/2007 - 20:53

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