Can a company garnish your wages?

Question

Can a company that gives payday loans garnish your wages if you don't pay the loan back in Illinois? Can collection agencies?

Answer 1

If they sue you and get a court judgment, they can. (anyone that sues you and wins can).

There may also be provisions in your contract allowing them to just take the money from your bank account or allowing them to get your wages without a court. Also they can harm your credit, not paying obligations back is serious business!

See 735 ILCS 5/12-801 through 735 ILCS 5/12-819.

Answer 2

No creditor can garnish anything without a court order. The have to win a judgment before they can get an order. Unless you have been served with a lawsuit, anyone telling you they will garnish anything is lying and violating Federal law.

Note to Frank L: If there were a provision in the contract allowing them to pull from any bank account without a court order, they would not be threatening garnishment. If they had the right, they would just do it. There can't be a provision allowing wage garnishment.

Answer 3

Your wages can only be garnshed by court order. If a judge decides that your wages can be garnished to pay back a loan, your wages can be garnished.

Answer 4

I used to work for a collection agency. All they need is a physical address to serve the papers to and verification of your employment. Unfortunately your employer can release your wage per hour and start date of employment without your permission. Some employers also offer information such as other current garnishments or liens.

Sorry for the unfortunate news. If you owe money and they know the two things above... your going to be garnished.

Answer 5

your wages can only be garnish by a court order, or a government agency.

Answer 6

yes, of course