What are the garnishment laws in regards to a Payday Loan obtained online?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What are the garnishment laws in regards to a Payday Loan obtained online?
I have an employee who got a payday loan on-line from a company in UT. She is now in default and the company wants to garnish her wages based on a contract she signed with them on-line. The have garnishment documentation but not an actual court order. Can she be garnished based on her signing their agreement and their paperwork or does the company have to have an actual garnishment summons?
Asked on October 20, 2010 under Bankruptcy Law, Virginia
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I think that you should check with your business attorney and your accountant on this matter. Virginia laws on payday loans and companies that do the lending is much stricter that Utah's. In fact, Virginia requires that payday lenders be licensed when lending to Virginia residents whether or not they have a business in Virginia. What you have before you is what: a self executing agreement to garnish? You need to check if this is legal in your state. Some states allow self executing agreement (where the lender does not have to go to court but can just use the agreement to collect the debt). Some do not. But I would err on the side of caution until your attorney checks it out.
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.