I took one of those rediculous payday loans out and thought I had finished repaying. Anyway, I found out 2 weeks ago that I still owed them 2 payments (which should have only been about $300 but because of interest and late fees it double to $600)!!! They never sent me anything by mail nor called me prior to receiving a garnishment notice in the mail so I really didn't know I owed them anything. I called them after getting all my receipts together and attempted to make payment arrangements. They advised me that since the garnishment was in process I could either pay the balance in full to avoid the garnishment or just let the garnishment run it's course. Well, I don't have $600 right now so I decided on the latter. The first garnishment is due to come out of my check on Friday. Today, Wednesday, I noticed that they took a one month payment out of my checking account!!! Which overdrafted my acct. My question is, can they garnish my wages & deduct payments from my checking acct too?
2007-10-31 07:20:11 · 6 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
I just pulled my paperwork and they never sent me anything referring to a court order or anything having to do with court, they did however, have me sign a wage assignment when I took out the loan. It basically states that if I am 10 days late or more on a payment they have the right to garnish my wages.
2007-10-31 07:34:52 · update #1
They have to have a court order to get a garnishment. If they do have such a court order and you weren't served, you must have the order vacated in the court, for obvious good cause. That can take some time. If you don't protest in court, the loan co could even keep the garnishment going after the debt has been repaid, and then you'll have to work to get the excess funds BACK.
The first thing you need to do is to OPEN A NEW ACCOUNT AT ANOTHER BANK, point your direct deposit to the new account, and close the other one. You can complain all you want, but as long as the bank believes the loan ppl have authority to take from your accounts, it will continue.
If the loan co does get an order for garnishment, they can take up to 60% of your wages as a garnishment (federal law). I think they're giving it to you the hard way because you probably just have had no knowledge to stand on (please don't be offended).
CLOSE THAT @&!*^ ACCOUNT, QUICK!
2007-10-31 07:34:00 · answer #1 · answered by Shell Answer Man 5 · 1⤊ 0⤋
I would think they would need a written agreement from you or some court order saying they have the right to take anything out of you acct. There are legal means to stop this type of actions if the company doesn't have a court order.You may want to have a legal attorney look at the original terms on the loan.
2007-10-31 14:29:17 · answer #2 · answered by Anonymous · 1⤊ 0⤋
First off I am sorry that this has happen to you. What you need to do is get there hand book and read so if it states they can take out pay check and acct. I don't think so that sounds a bit to much to take out both places. I would call corporate and get some understanding. Go to your bank and tell them do not let this company pull money from my acct. If the company will not answer your questions nor give you paper work that states this is what they can do, u than take it to the next level. Rather it is send a letter to Austin or find a attorney. Make a move ASAP. Please next time do not go to theses places they are High way Robbers.
2007-10-31 14:27:39 · answer #3 · answered by Law Lady 08 1 · 2⤊ 0⤋
It depends on the terms of the loan agreement that you signed with them. Look in the fine print and unfortunately that is probably there. You could possibly fight it but the attorney's expense would be more than the loan. You could try calling the Attorney General's Office Consumer Affairs division and run it by them.
2007-10-31 14:25:39 · answer #4 · answered by The Oracle of Delphi 6 · 2⤊ 0⤋
The agreement you signed probably gives them the authority to debit your checking account.
They can't garnish your pay without a court order. But they are probably counting on you not knowing that.
2007-10-31 14:24:48 · answer #5 · answered by Teekno 7 · 2⤊ 0⤋
They most certainly can.
It's probably in the agreement that you signed.
Sorry to hear about that. I know garnishments are a bee-yotch. I know people who owed state taxes, and had their bank accounts locked, and funds were taken out, before the warning notices arrived in the mail.
2007-10-31 14:22:57 · answer #6 · answered by SoulDawg 4 UGA 6 · 1⤊ 1⤋