payday loan compnay trying to garnish my wages?

Question

I live in Chicago, and I took out a payday loan and I can't pay it back, I had to do this and I needed the money for a family reason, and now they are calling my job and telling me that when I accepted the loan that I agreed to a wage garnishment that I gave the company permission to garnish my wages. How do I get out of this, I wouldn't let the person talk to my boss, but I went to my boss before they called while I wasn't here. My boss is understanding..but how do I stop the calls, they say that come Monday it will be happening..and that I can't go to court when I told them I wanted to go to court. They wouldn't accept a payment plan..Help please...

I never signed anything, it was over the internet, and I do want to pay them off, just they won't take any payments, they want payment in full. I don't have that. I also just dont want them calling me at work. They can call me at home whenever or even on my cell, but not at work.

Answer 1

You should have written them a check payable on payday so they didn't have to garnish your pay. The payroll clerk won't garnish without a court order or something you signed. Don't let it get to the court stage or you will have a judgment on your credit history.
If you go to court they will win you owe the money.

Answer 2

Can Payday Loans Garnish Wages

Answer 3

First off the FDCPA will do nothing for you. That applies to 3rd Party Collection Agencies and not Original Creditors. This payday loan place is the original creditor and is not required to abide by these regulations. So you can request that they stop calling, but they do not have to.

As to if this is just a threat or they actually intend to garnish your wages depends on what you signed. If when you signed the loan documents you waived your rights to a court hearing and agreed to wage garnishment, then there MAY not be much you can do.

If after reading every thing you signed, you find nothing to what they are saying then it is just a threat. In this case you can have your day in court and they must get a judgment against you before your wages can be garnished.

In IL they can garnish your wages for up to 15% of your gross earnings(after taxes but before other deductions) or your disposable income up to 45 times the Federal Minimum wage, whichever is greater. So in your offers you might want to be sure you are at least offering them what they would be able to claim in a Wage Garnishment. If you do get them to agree to it be sure that you have it in writting before you send them any money. Also, during this time you might want to at least put aside money each paycheck in order to either pay off the payday loan after a while, or cover the difference if they do start to garnish your wages.

Answer 4

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RE Payday loan compnay trying to garnish my wages?

I live in Chicago, and I took out a payday loan and I can't pay it back, I had to do this and I needed the money for a family reason, and now they are calling my job and telling me that when I accepted the loan that I agreed to a wage garnishment that I gave the company permission to garnish my wages. How do I get out of this, I wouldn't let the person talk to my boss, but I went to my boss before they called while I wasn't here. My boss is understanding..but how do I stop the calls, they say that come Monday it will be happening..and that I can't go to court when I told them I wanted to go to court. They wouldn't accept a payment plan..Help please...

Answer 5

Read your contract, but their threat of wage garnishment is a scare tactic. They can not garnish your wages without a judgment against you from a court of law. Tell them to stop the bs.

Send them a certified letter demanding they stop calling you at work as your place of employment does not allow personal calls. Quote this section of the Fair Debt Collection Practices Act

"§ 805. Communication in connection with debt collection [15 USC 1692c] - a debt collector may not communicate with a consumer in connection with the collection of any debt --

(3) at the consumer's place of employment if the debt collector knows or has reason to know that the consumer's employer prohibits the consumer from receiving such communication."

Call them and work out an agreement.

Finally, learn your lesson and never deal with a payday loan again.

Answer 6

You need to read your contract. If there is a section stating that you agreed to wage garnishment, and you signed the contract, they can and will garnish your wages,but will have to got to court get get it ordered.
Your post sounds like you just want to get out of this situation without paying your debt? Get a free payday? If it was for a family reason, maybe you could get a hold of your family to help pay it back.

Answer 7

They cant garnish your wages without taking you to court and getting a judgment.
Sooner or later they will take you to court so, you need to start saving up and pay it off.

Answer 8

read the internet contract that you accepted, and you will most likely see they have their bases covered. They took a risk and will collect on it, you are lucky they do not just debit your account and cause you more fees. They are the scum of the Earth call it a lesson learned and stay away from those places.They put you in terminal debt with high interest rates. Pay them, suffer and learn from the experience, that is about all you can do at this point

Answer 9

Now might be a good time to read what you signed.

These companies are making loans to people who have cash flow issues so it only make sense that they’d have protections in place to make sure they get repaid.

Answer 10

Thank you! Extremely valuable information and gives me better insight on the topic