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revocation of Wage assignment

jadegurljadegurl ✭✭✭
edited January 2012 in General Payroll Topics
Ok, this is a little strange...I am in IL, today I recieved in the mail a letter from one of my employees stating that she is revoking a wage assignment that she has with First Cash Advance.
It was not notarized.
It appears that she also sent me a copy of the letter that she sent to them(First Cash) via certified mail.
Is something like this legal - can the employer be held liable if we recieve the wage assignment and don't withhold based on this???

I have no idea if she actually signed with them...

I have tried googling the law she is referring to and not coming up with anything...

16 C.F.R.ss 444.2(a)(3)(i)

Thanks for any help on this.

Comments

  • Thanks for the Search tip...this is what I turned up.

    http://law.onecle.com/illinois/815ilcs122/2-7.html

    I am going to hazard a guess that her letter is only going to stop the initial attempt by them to collect the funds based on her signed collection agreement with them and that if they actually take her to court and get a court ordered wage assignment we are bound to withhold on that.

    Thanks David
    :)
  • my experience: the illinois wage assignment act is very specific on the wording in the original wage assignment the employee signed (so much so that they even call for correct font size)... copies have to be sent to employer, so many days in advance and via certified mail.... most of the time these rules aren't followed by the lendor which basically makes them null and void.

    it is however also very rare for an employee that signed a wage assignment for a crazy pay day loan to know that they can easily get out of it. usually i'll honor whatever is sent in up until the employee themself complains about it and revokes the wage assignment. this only happens about 1% of the time though.

    also my experience tells me that there isn't a real court in the state of illinois that will issue a court ordered garnishment based on a debt someone incurs as a result of a pay day loan. that being said, the employer is almost never held liable for not withholding wages.

    those places prey on the weak, but, IMO, just because they're preying on the weak doesn't mean the people that voluntarily accept 400% interest loans should get away with "free money"
  • edited January 9

    If there is a wage assignment, and it is paid, why do they continue to send more stating more money is due? Once a revocation letter is sent, what can they do next? They being the payday loan company? How can we make sure it is taken care of, and they mark it as paid in full and closed? (since the total amount on the contract plus some) is paid in full, but they continue to send notices for more monies are due? Just ridiculous.. @David Warren have there been any updated laws in the last few years?

  • rrupertrrupert ✭✭✭

    Are you the employee or payroll admin? I would think the payday loan company would be adding late fees and interest for the whole time period that money is owed which is keeping the balance from $0? Has anyone asked for an accounting from the payday loan company? Don't know the legality, but did the employee ever close out or settle the matter for a specific amount to stop accruing more fees? Just one more reason to avoid payday loan companies....

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