Can a company take my severance pay and apply it to loans held with their credit union, without my written consent?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a company take my severance pay and apply it to loans held with their credit union, without my written consent?
Asked on October 5, 2012 under Employment Labor Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
They can only do this with your consent, but you may have consented in the agreements covering your accounts or loans with the credit union--that is, it's possible that the loan agreement, for example, says that the credit union may set off or apply against the amount owed to it by you any amounts it, or an affiliate of it (i.e. your employer), owes to you, such as severance pay. So you are correct in that you must have consented to this, and if they take the money without your consent, you could sue them for its return; however, you need to make sure that you have not in fact signed anything which does give them this authority, and a good place to look are the loan agreements and other agreements governign your transactions with the credit union.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.