Pay Day Loan Collection

[Hit From Behind]

What is the name of your state? Wisconsin

I recently defaulted on a payday loan and have been trying to work with my community's Consumer Credit Counseling to arrange payments with this company. They have been unwilling to work with me and say they don't accept credit counseling. Today they e-mailed to me a copy of a wage assignment form which appears as if it's going to my employer (although my employer has not seen a copy of this as of yet), demanding the full amount of the loan. I have 2 questions: 1) Don't they have to get a judgement against me prior to any type of wage garnishment (although I did initial a wage assignment form upon taking out the original loan--don't know how valid that is), and 2) If they can just go ahead and garnish my wages, can it be taken all out of one check? I find that hard to believe as I already have child support and another garnishment coming out of my pay already. Isn't there a percentage per check?

Any advice would be greatly appreciated!

Rule #1: NEVER SIGN A VOLUNTARY WAGE ASSIGNMENT!
But, since that has already happened, use this advice for next time.
Anyway, I believe the only state that will honor a wage assignment without a judgment is IL. At least, that's the only state I've ever seen them in. More than likely, your employer will not accept it with out a court order (judgment). And yes, there is a limit on how much of your pay can be taken out for garnishments. It is 25%. Most likely, your child support gets x% and the other garnishment gets the rest up to 25%.

[Hit From Behind]

State: Wisconsin

Dear Raina,

Thanks MUCH for the advice. My employer's payroll dept. is going to alert me if anything comes through on this, so I'll work with them accordingly. Appreciate the help!!

No problem.