Collections of Payday loan

[blahbleebloo]

What is the name of your state? CA

Okay, so I did a stupid thing when I was broke and hungry and took out a payday loan, with every intention of paying it back, but then due to health issues missed a lot of work and so was unable to pay it back in a timely manner.

Now I'm feeling much better (thank goodness my employer was extremely understanding), and would very much like to pay this back, however with the extravagent interest the $300 I borrowed has turned into almost $700 and I would need to make it in several payments.

So this Collection Agency called me and extremely rudely told me that if I didn't pay the balance in full then they would take me to court. I, of course, did not want this to happen, but I do acknowledge my debt, so I asked if I could make some monthly payments. She refused. Now I understand that no collector is under any obligation to enter into a payment arrangement with me so that's not the issue. Or even the rudeness, although I must say name calling is pretty unprofessional, no matter what the circumstance, but I digress.

I am not disputing the validity of the debt. I owe it, and I owe the interest (no matter how extravagent it is). I figured that since the CA wouldn't take payment arrangements, and I didn't have the cash to pay it in full, then I'd just have to deal with a judgement and garnishment of my wages. I'm not happy to have to do that, but it is what it is.

My question is this: I'm not disputing the debt, but I think in California the garnishment laws say that they can take up to 25% of your disposable earnings. This is way too much for me to be able to do, and still pay my everyday bills (oh you know those frills like rent and groceries). Is there a way that I can appeal to the courts to come up with something that I can better afford? And if so, do I do it WHEN/IF I get a summons, or do I want until AFTER a judgement has been made?

I just want to make sure I know what my options are so that I'm ready when the time comes. I'm ready to pay the piper...just hopefully in a way that doesn't put me on the street?

 

[seniorjudge]

http://www.bcsalliance.com/debt1_california.html


I have NO idea who these people are, but it may be a good start for your research.

Don't take the website cited above as the gospel truth.

 

[blahbleebloo]

Sweet...thanks for that. I guess my option is a Claim of Exemption...

The really odd thing (or maybe I just think it's odd) is that I don't necessarily mind if they take somewhat reasonable payments. That's basically what I wanted to do in the first place (although I realize this is much more expensive).

Anyway, thanks for your help!

 

[blahbleebloo]

Follow Up Question -

Hello again,

I have some follow up questions regarding this, and forgive me if I sound obtuse, but how exactly does a garnishment work? I have very limited knowledge on this obviously, but I think there needs to be a judgement in court first right?

Well if the collection agency is in another state, regardless of what state the suit is filed in, I should receive some kind of notice correct?

The reason I ask is that, purely by accident, I received a phone call at work from the collection agency asking for my Human Resources department (they didn't realize the # they had was my direct line). Admittedly I don't know exactly what they wanted to discuss with my HR department, but I assume it has something to do with the garnishment.

Should I have recieved something first before they contact my employer?

Again, forgive my ignorance, this is my first foray into the world of wage garnishments. Also, I want to reiterate that I have no dispute that this is my debt and I'm not trying to get out of paying it. I just want to be informed.

 

[Ladynred]

No one can garnish your wages without suing you and getting a judgment against you FIRST. Payday loan places are notorious for their nasty and illegal threats, but they cannot go around the law.

Well if the collection agency is in another state, regardless of what state the suit is filed in, I should receive some kind of notice correct?

It doesn't matter where THEY are, if they sue you, it'll be in a CA court, and you WILL be served a summons.

They cannot do ANYTHING by talking to your employer other than to pry information out of them, they can NOT get a wage garnishment without a judgment. Their tactic here is to embarrass you with your employer.

 

[Chien]

OP - SJ may not have been familiar with the BCSAlliance site but I am and commend it. The site covers a very broad range of relevant consumer debt data for all states. In my experience, its information is current, and it’s a useful resource. My sense has always been that it seems a bit too weighted to bankruptcy as a solution, but that’s an individual decision.

If you’re interested in California exemptions, here is an alternative link to current exemptions and the statutory authority:
http://www.courtinfo.ca.gov/forms/documents/ej155.pdf

CCP refers to the California Code of Civil Procedure, and you can find that here:
http://www.leginfo.ca.gov/calaw.html

I would agree with LNR about payday loans (in any state that still allows them). They are something to avoid. California does a better job than many states in regulating the industry, but I’m sorry that the industry exists anywhere.

LNR is also right about the need for a judgment before enforcement (the very few exceptions to that rule – like tax delinquencies – aren’t relevant to payday loans). Also, with very few exceptions, such as evictions, California doesn’t permit posting or other forms of service that exist in other states, so you should be aware of any pending action.

The problem is, with a payday loan, suit is likely to come to pass and, if you aren’t able to satisfy their pre-litigation demands, it’s likely to be successful, because it’s not likely there is a defense.

As far as trying to embarrass you with your employer, LNR may be right again, but I don’t think so. Payday lenders are in a strong position; that kind of thing is rather pointless. My speculation would be that they were trying to ensure that they had a viable asset before suing. They were making sure that you still worked there and there was an asset (wages) to pursue, if they did sue. That’s just practical business. If I’m right, they’re getting themselves organized to sue and enforce. If you have a proposal to make to them, do it now. If you don’t, be ready to act if a judgment is entered and they do seek to garnish.

You’ll get notice of a suit by service of process. You won’t get advance notice of a garnishment. Papers will be served on your employer, and it will be the employer’s responsibility to notify you of the fact of a garnishment and the right to claim exemptions. If you have any, be prepared to act promptly. I would suggest that you review the exemptions to see what they could really reach. Note that, in addition to statutory exemptions, you're entitled to exempt "necessities of life" - cost of food, reasonable rent, medical care etc.

 

[blahbleebloo]

Thanks so much!

Thanks so so much for all the good information given here!

I've tried setting up payment arrangements with the collection agency, but they don't want to do it, so I'm stuck with the garnishment route unless I can come up with $600 out of thin air, which is not a trick I've mastered just yet.

Anyway, thanks so much again to everyone that answered!

 

[blahbleebloo]

Sorry for reviving my old thread, but I wanted to again thank everyone that offered advice, and kind of give an update...I still haven't recieved any kind of summons, but the CA called me again today (this time asking for me) and now wants to set up payment arrangements.

Basically they're getting the same outcome without having to go to court (of course that's because I'm willing to pay them). I figure with this route everyone wins! They get their money and I get to avoid having my wages garnished.

Anyway, not that anyone really cares, but I figured that it was worth updating since you guys were so awesome before. Also, needless to say I've learned some very valuable lessons. I've also found out that some places here in California are actually banning payday loans, which is great I think.

Thanks again!

Annie

 

[gacuna]

Sorry for reviving my old thread, but I wanted to again thank everyone that offered advice, and kind of give an update...I still haven't recieved any kind of summons, but the CA called me again today (this time asking for me) and now wants to set up payment arrangements.

Basically they're getting the same outcome without having to go to court (of course that's because I'm willing to pay them). I figure with this route everyone wins! They get their money and I get to avoid having my wages garnished.

Anyway, not that anyone really cares, but I figured that it was worth updating since you guys were so awesome before. Also, needless to say I've learned some very valuable lessons. I've also found out that some places here in California are actually banning payday loans, which is great I think.

Thanks again!

Annie

Do me a favor and dont fall for their pathetic lies. Chances are the lady who called you was obese and sitting in some tiny cubicle eating twinkies while waiting for her next victim on the re-dialer. They will say anything to earn their commission. I go to college and some students work at collection agencies (call centers) and they make pretty ok money off the commission. Ive literally laughed in their face when I was threatened with get this: jail! LOL hilarious stuff. Ive purposely gone and paid the original creditor so when the cA calls me I can give them a hard time. Fun times. Tell them you are filing bankruptcy tommorow or something and theyll be at your feet in no time begging for mercy. (and no im not some deadbeat with stuff I cant afford. Life happens, you get behind on your bills. generalizations are utter ignorance.)

 

[Antigone*]

Fun times. Tell them you are filing bankruptcy tommorow or something and theyll be at your feet in no time begging for mercy. (and no im not some deadbeat with stuff I cant afford. Life happens, you get behind on your bills. generalizations are utter ignorance.)

The OP is doing the right thing by making a reasonable attempt to take care of his debt. He doesn't need an idiotic, irresponsible, ignorant, deadbeat like you giving him bad advice. The FAT lady eating twinkies on the other side of the line can really make his life miserable: Just remember...it ain't over until the she sings!!

Gac...bad first impressions are hard to get over and you sure did a good job making one.

 

[gacuna]

The OP is doing the right thing by making a reasonable attempt to take care of his debt. Never said he shouldnt. He doesn't need an idiotic, irresponsible, ignorant, deadbeat like you giving him bad advice. Advising someone to quit worrying over empty threats made by some dumbass over the phone is not bad advice. The FAT lady eating twinkies on the other side of the line can really make his life miserable:So can I. And I have.lawsuits go both ways, buddy. ive sued two agencies before to the fullest extent of the law due to their illegal tactics and have won. Just remember...it ain't over until the she sings!!Or has a heart attack due to the grease clogging her arteries.

Gac...bad first impressions are hard to get over and you sure did a good job making one.

Again, generalizations=ignorance. Thanks for proving my point.
Love,
Deadbeat.

 

[TigerD]

Again, generalizations=ignorance.

So when you wrote:

Chances are the lady who called you was obese and sitting in some tiny cubicle eating twinkies

Were you being ignorant in regards to collections or being ignorant in regards to your stereotypical prejudice against overweight people or were you being ignorant in your sexist approach to determining that only overweight women would work in a cubicle and eat phallic symbols?

I'm sorry, I just need clarification as to what level of ignorance you actually rise to.

DC

 

[gacuna]

So when you wrote:


Were you being ignorant in regards to collections or being ignorant in regards to your stereotypical prejudice against overweight people or were you being ignorant in your sexist approach to determining that only overweight women would work in a cubicle and eat phallic symbols?

I'm sorry, I just need clarification as to what level of ignorance you actually rise to.

DC

lol

Um I choose B. no, A. Your comment made me giggle. And by giggle I mean vomit. Wait, what?