Can a payday loan company garnish my wages? Also are they allowed to call my work and speak to other employees and tell them that I commited Fraud?

When you took the loan, I’m sure you put your name on a contract. If you didn’t meet the terms of that contract, they are allowed to try to claim their money.

My rule of thumb is, if I don’t want someone calling me at work, I don’t give them my work number.

You might seek legal help to see if this would qualify as a harassment claim, but that would likely cost you money to pursue. Still, most lawyers give free consultations.

Yes that is a good idea although one I could not afford. I understand that I have to pay them I did borrow the money. But I have tried to pay them back I have actually already paid back over
$ 200 ( and the loan was 200$) But there are so many fees and stuff on there now. I was paying a little every pay day before I went to the hosp. Now they will not allow any payment arrangment that I can afford. I guess my main issue is that they are being very mean about they act like I just don’t want to pay at all.

@jennsweet

Then tell them you’re not going to pay. Better yet, tell them you’ll pay them $5 a month, every month, until the seas rise or the debt is paid off, or they can piss off. Go ahead, put it on my credit. Eff you. Mean everything you say.

Then see how long it takes them to come to an agreement.

It’s the creditor’s job to guilt you into paying them. However, it’s also their job to bring money into the company. $10 a month is a heluvalot better than zero dollars forever.

I have said that I just said it while in tears so they said fine and that I better not call them again and they will just garnish my wages. I filed a complaint with the Better buisness bureau but I am sure that accomplished nothing. I am just worried I do not know if they really can garnish me or if it’s a threat but because they told me to stop calling them I feel it may be real.

From this site.

To answer your question, internet payday lenders most generally cannot pursue you legally for defaulting unless they are licensed to do business in YOUR state. There are a couple of states (PA is one of them) where the law has a loophole in it that allows out of state lenders to lend into the state, but that’s not the case everywhere.

The only way they can garnish your wages is if you signed a wage assignment agreement. However, to be safe, you are best to send them a letter, via certified mail, return receipt requested, stating that you are revoking their ACH authorization to debit your bank account, and that you are also revoking any and all wage assignment agreements they may have with you. Also state in your letter that you will not communicate in any manner other than in writing, and that they are to cease calling your home and your work.

That is a GREAT answer and that is what I will do as soon as I get there address they have never sent me a bill and when I asked for there address they would not give it to me but if they call me again I will pursue it and say exactly that. Also the check cashing place I borrowed the money from is now closed.

I always thought you had to get a judgment in court to garnish wages. I’m not even sure a bank will release funds without some kind of court document making it official. They can get into trouble for doing that so they won’t. Try changing banks.

Yeah they were telling me to expect the supena. They also told my employees that they were going to serve me and then were asking them my hours so they could serve me at work. But they should have my home address so not sure why they did that.So I have just been waiting for it.

[mod says] Minor typos corrected via internal edit.

Seek, everything you stated has merit. i would only add that be sure to make at least two copies of the letter, before you send it. the library charges only 10 cents per copy.

@jennsweet, I know from long-past experience how easy it is to get into a financial fix, and I’m truly sorry for the worry and stress it’s causing you. I hope when you get through this payday borrowing experience (lots of great advice above) you’ll avoid doing it again. There have been so many articles about its risks.

I wonder if you don’t have a possible slander suit if they’re making false statements about your character to your employees. I’m not a lawyer, but I can certainly see how that could damage your ability to effectively do your job. A lawyer might be able to give you a better idea about how winable such a lawsuit might be.

Are you saying that in the last year, you could not pay off $200? These people mean business. Pay your debt, and they will go away. If you have any extras, like a cell phone, cable service, etc. discontinue that service for a while until you can pay this off. The agreement that you signed as part of the loan basically allows them to collect.

@BarnacleBill she did pay back the $200, it’s the fees and hidden charges that they’ve tacked on that she’s having an issue with. Payday loan people are absolute scumbags who prey on the poorest people that don’t have the means to defend themselves.

Creditors are actually fairly limited in terms of the tactics they are allowed to use to collect on a debt. It already sounds like these people have stepped over the line…severely. Unfortunately, this seems like it could be common, since the debt sounds small enough that few would pursue litigation to dispute it (as the cost of litigation would FAR exceed the debt). I’m fairly sure, though, that if you write them, telling them to cease contact regarding the debt, they are legally bound to comply (any communication of that nature I would send certified mail return service requested). Again, I’m fairly certain that’s true, but you really should review some material on the FDCPA to see if it’s applicable. There may also be some state-based protections against aggressive creditors. Here’s something to start you off:

http://www.pennlawyer.com/fdcpa.htm