Payday loan Default/Wage Garnishment-KY

[smirn07]

What is the name of your state? Kentucky

I have had a payday loan problem for months (as many as 9 at one time). Finally couldn't keep up anymore. My checking account was closed for excessive overdrafts. I contacted a certain payday loan company to notify them that I would like to make payment arrangements to settle the debt. This company is unwilling to do so. In fact, I made the mistake in signing a wage assignment form when I originated the loan. They have threatened to begin garnishing my wages this Friday if I don't pay in full. I understand that by signing the form I've given them the right to garnish wages, but from what I've read it is my understanding that they could only garnish up to 25% of my disposable income in KY. Is this true? Obviously, the representative of the company told me it wasn't true since I signed the form and they could take it all in one lump. He has already contacted the Payroll Manager at my company. Any advice would be greatly appreciated. Thanks.

 

[roadiez]

Guarnishment

Make sure the $$$ is not taken out with out a court order!!!!

What is the name of your state? Kentucky

I have had a payday loan problem for months (as many as 9 at one time). Finally couldn't keep up anymore. My checking account was closed for excessive overdrafts. I contacted a certain payday loan company to notify them that I would like to make payment arrangements to settle the debt. This company is unwilling to do so. In fact, I made the mistake in signing a wage assignment form when I originated the loan. They have threatened to begin garnishing my wages this Friday if I don't pay in full. I understand that by signing the form I've given them the right to garnish wages, but from what I've read it is my understanding that they could only garnish up to 25% of my disposable income in KY. Is this true? Obviously, the representative of the company told me it wasn't true since I signed the form and they could take it all in one lump. He has already contacted the Payroll Manager at my company. Any advice would be greatly appreciated. Thanks.

Yes, that is what they will do. But they have to go through the court system to get this done. Make sure that your "Payroll Manager" doesnt let them take out the money without a court order!!! The only remedy that you have is something drastic and that is file bankruptcy( think long and hard on this..Not just say yes to it). Also you might find out when they might go to court to have this approved.Then tell the judge what perdicament and ask him to have a lower amount removed...Make sure that you take oyur bills in and such. But don't take too many extras like excessive cable and 2 or 3 cell phones

 

[smirn07]

Looking for clarification...

Thanks so much for the reply. But just to clarify, you stated, "yes, that is what they will do." Do you mean, that they will try to take a lump sum in the garnishment or that they will be limited to 25% of disposable income. Thanks again.

 

[roadiez]

Just what is allowed

By law the only thing they can take is a certain percentage...Right now I don't know what that amount is...If the Check scam place recieves a judgement from the court it will stay in effect for 10 years(Meaning they can collect on that judgement for that long).Hope all geos well. Just stay away from those types of places...I know I do now.

 

[smirn07]

Thanks again.

Thanks again.

 

[Ladynred]

First of all 'wage assignments' of that type are NOT legal in all states. Prohibited or not, all of these payday loansharks use the same form, but that does NOT mean they can get away with actually DOING it. You need to find out if KY allows such a garnishment without a court order and a valid judgment.

Futhermore a wage assignment:

- Does not have legal force from a court, as does wage
garnishment.
- It is a legal agreement between a lender and a debtor.
- Permits lender to collect part of debtor’s wages from an
employer if debtor fails to make regular payments.
- Employer is not legally compelled to honor a wage
assignment arrangement.

So, there you have it. They can call your Payroll dept all they want, your employer is NOT legally bound to honor it.

 

[roadiez]

Had it taken from me

I do know Ky. allows this type of garnishment. I have had it done....Yes it is painful. But hopefully it will be over with shortly.
Like I said before make surre that you take copies of all bills that are monthly bills. If you you take too many extras the judge could rule for more than what you actually have as disposable income.

 

[smirn07]

I owe $1300. I've offered to pay half today by western union and half in 2 weeks. I've already received my paycheck for today so they couldn't garnish that. Thus, they would get their money quicker if they just settled on the arrangement. Do they have any incentive not to settle on a payment arrangement? (i.e. they will charge me significant interest if they garnish?)

 

[Ladynred]

Ok, so KY ALLOWS it but your employer is not LEGALLY BOUND to honor such a wage assignment! ! ONLY the court can make it a court order to your employer !

These places don't want to deal, they are as bad if not worse than most collection agencies, they want it ALL.. NOW, NOW, NOW !!! At the 300-400% interest, or more, there is NOTHING worth a payday loan. I only wish all states would just ban them !!

 

[guest.]

Yeah, we just made them legal again.........

and guess what business venture the old owner of (bankrupt collection business) CFS just started?