Why Wage Garnishment Is a Nightmare

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’s 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?

When It Is Legal for a Lender to Garnish Borrower’s Wages

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’s order for garnishment. Without court’s 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.

Join Our 50,000+ Customers Who Get Money Right When They Need!


Reviews are the independent opinions of our users, and we do not hold any of them to be representative of all CashAmericaToday borrowers’ experience.

A trusted single lending source for your cash crunch. Apply now!
Get Started

Applying Does NOT Affect Your Credit Score

We are registered with Utah’s Department of Financial Institution to provide Consumer Credit. If you submit this application via the internet to us, we will receive and process it the same as if you submitted it to us in person thereby making Utah the place of negotiation, execution and performance of all applications and/or agreement. If we approve your application, the funds will be disbursed from our account in Utah. Utah law governing consumer loan agreements may differ from the laws of the state where you reside. Applicant is responsible for complying with all statutory obligations regarding obtaining loans by internet that may exist in their state of residence. This service may or may not be available in your particular state.

CashAmericaToday does not perform any credit checks through the three major credit bureaus Experian, Equifax or TransUnion. We collect required information regarding debtors’ creditworthiness from a third party source.

Approval time depends on the authenticity and verifiability of your documents. You might be requested to provide further information if required. Note that we do not approve all the loan requests. On the basis of state laws and your repayment ability, the terms and rates may vary. Any loan requested on Friday after 6:00 PM EST will be processed on the next business day which is usually Monday- unless it is a holiday.

Should you have any doubts, please call our customer support at (855) 840-5688, Monday-Friday: 8:00 AM to 7:00 PM (EST) or email to support@cashamericatoday.com.

* I have read and understand the Terms and Conditions & Privacy Policy of this loan. All loans financed by CashAmericaToday