Well, according to the FTC the answer is no. There are two stages to this issue. First a lender must be licensed in the state they are lending you money in and if they are licensed they must file a civil suit before a judgement can be entered and a garnishment ordered. Many lenders are not licensed and continuously by pass due process by sending a garnishment to your employer without a court order. The FTC states this is not legal. The FTC filed suit against defendants who are named Eastbrook LLC, also doing business as Ecash and GeteCash; LoanPointe LLC; Joe S. Strom; Benjamin J. Lonsdale; James C. Endicott; and Mark S. Lofgren.
The FTC claimed that these payday loan companies illegally tried to garnish borrowers’ wages. They did so by offering loans of up to $1,000 to be repaid from a borrower’s upcoming paycheck. They require online loan applicants to check a box on their agreement, indicating their clients agree with loan terms.
These terms included an inconspicuous statement consumers often don’t see or don’t read, which states that their wages will be garnished to cover delinquent loan payments. The statement allegedly attempts to circumvent federal requirements, including a debtor’s right to revoke a garnishment agreement.
The FTC alleges that, in carrying out their scheme, the lenders violated the FTC Act, the Fair Debt Collection Practices Act, and the Credit Practices Rule. U.S. law allows federal agencies to require employers to garnish employees’ wages without a court order when the employees owe the government money only. But a payday lender is not a government agency must take action in a court of law and get a judgement before they can proceed with any wage garnishment. You can read more about the FTC Suit here These loans must be paid back and our proven program will help you. Just fill out the form to the right for a no obiligation quote. You have nothing to lose and everything to gain by getting these payday lenders off your back.
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