Seems we hear “Can payday loans garnish your wages?” on a daily basis here at Help With Payday Loan Debt so we thought we should do an article on this topic.
This is a question that is asked all the time when people come to us for help with out of control payday loan debt and the answer can get a bit long and confusing but the sort answer is yes, they can but it is rare they actually go through with it.
Already confused?
Let me explain how they think and why they think that way and it will be much clearer to understand what to expect from the loan companies when they threaten this action.
Threats of Legal Action And Garnishment
The payday loan industry uses some pretty questionable collection practices with their brick and mortar payday loan stores and the online companies can be downright brutal!
We have been told story after story of strong arm tactics using threats of legal action and garnishment to down right telling customers they would be stopping by borrowers houses to pick up a payment.
All these are scare tactics to get your money and you do not need to be afraid of these threats. instead, be proactive and remove them completely, and I will get into that option a bit later in this article.
Back to the question, “Can payday loans garnish wages?”
Yes, but they would have to get a court to order it and this is not an easy thing to do in this industry.
Judges do not like to order people to pay on high-interest short term loans and the payday loan companies know this.
Thus, they will not start court proceedings unless it is a very last ditch attempt to collect the debt, and then most do not pursue it.
They also know most people in this situation can not pay to begin with!
The payday loan companies will just loose more money by taking you to court.
What they will do is drive you crazy!
What Happens?
The most aggressive payday loan companies threaten you and harass you with never ending calls to your home, work and references and they will say whatever it takes to get you to cough up money to them, including suggesting you borrow the moeny you owe them from friends, and they even suggest you pawn your valuables to pay them.
Their thinking is any money they can collect is pure profit and they are all about profit.
The longer they can hit your bank account, or when that fails, call you and threaten you to make payments, the more money they get.
They will offer you more loans to cover the current ones, threaten you with calling the cops, telling your spouse how much you owe, really, the sky is the limit for these guys!
You can report them to the Better Business Bureau but rarely do they get results, or you can check out our solution!
The Answer!
All these threats and phone calls and collection activity these companies are taking can be stopped in their tracks by using a good payday loan consolidation company.
Remember earlier I said we would get into the solution later on in the article and here it is.
One phone call to a good consolidation company and all this above activity can be stopped and the debt can be completely reorganized, a new total negotiated with a huge drop in the amount owed, and a new affordable repayment plan will be put in place!
This will end all of the collection activity and take away all the heat from the borrower.
Now that is a relief!
So, again, the answer to the question “Can payday loan companies garnish your wages?” is yes they can but they will not.
They will instead drive you absolutely crazy with their collection practices and you just do not need that happening in your life.
Summary
We understand how simply awful it is to be in debt to these companies and when it happens to you panic can set in pretty quickly!
Take it from someone who has been on both sides of payday loan debt and has dealt with these collection activities!
I have also used a consolidation company, these companies work!
If you have any payday loan debt you should really get hold of one of these companies as soon as possible!
You can find our recommendation for a reliable payday loan consolidation company below.
Thanks for reading and here’s to being payday loan free!