When you do not have the control over your paycheck, and a certain percentage of it gets deducted beforehand, it is nothing less than a nightmare. Wage garnishment, a court-approved legal process, does exactly the same to the people who fail to pay off their payday loans on due. precisely, the court directs the employer of the borrower to carry out this so that the owed money can be paid to the lender. That means the wages are garnished on each month\u2019s salary until the debt is completely paid. During that period, the employer also has to make sure that the borrower does not lose his job- unless it has to do with his performance. However, it is important to know, can lenders garnish your wages for a payday loan whenever they want? Is every lender eligible to initiate the process in the court? Can they do it without going to the court? <\/p>\n
If we follow the guidelines of Federal Trade Commission (FTC), garnishing wage is conditioned by two things. First of all, the lender needs to be a state-recognized financing company. That means a payday lender that is not registered has no legal right to ask your employer to deduct your wages to pay off the payday loan. And secondly, the state-recognized lender needs to put up a case against the delinquent borrower and get court\u2019s order for garnishment. Without court\u2019s approval, garnishment would be treated as illegal. Therefore, garnishing wages of a borrower is not easy. However, once it is legally done, the borrower has limited options to avoid it. Therefore, it is advisable to make the scheduled payment and pay back the loan to escape debt trap and in extreme cases, wage garnishment. <\/p>\n","protected":false},"excerpt":{"rendered":"
When you do not have the control over your paycheck, and a certain percentage of it gets deducted beforehand, it is nothing less than a nightmare. Wage garnishment, a court-approved legal process, does exactly the same to the people who fail to pay off their payday loans on due. precisely, the court directs the employer of the borrower to carry out this so that the owed money can be paid to the lender. That means the wages are garnished on…<\/p>\n