Can a payday loan company garnish your wages or contact your employer for personal information?

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Can a payday loan company garnish your wages or contact your employer for personal information?

I had several payday loans which I have paid off some, but still have others outstanding. I have been threatened with wage garnishment and a court case if I do not pay these off. I have also had these people leave messages on my answering machine at work stating that I committed internet fraud and willful evasion. If I’m not mistaken doesn’t willful evasion have something to do with taxes? So I don’t know what to do because the are not willing to work out a payment plan, they want my account information to debit way more than what I took out.

Asked on September 29, 2010 under Bankruptcy Law, Massachusetts

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The creditor would have to file a lawsuit and obtain a judgment against you before there could be any wage garnishment.  If the creditor prevails in a lawsuit and obtains a judgment against you, at that point you might want to consider filing bankruptcy.  If you are eligible to file bankruptcy, that would stop a wage garnishment.

If the creditor is making false statements about "Internet fraud and willful evasion", the creditor may be subject to liability.  "Willful evasion" may be referring to fraud.

The creditor cannot contact your employer to obtain personal information except the creditor can contact the employer to verify that you work there and to try to locate you.  The creditor can also contact the employer to set up the wage garnishment.  Again, there is no wage garnishment until there is a judgment against you.

Don't give the creditor your account information or the creditor will clean out your account with the outrageous interest rates those payday loan places charge.


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