Author Topic: Should I sue Apex for trying to garnish my wages without a court order?  (Read 3474 times)

0 Members and 1 Guest are viewing this topic.


  • Valued Member
  • Posts: 2
First time posting here. I apologize if this topic has already been discussed. My guess is that it probably has. So, I'll try to make this story short but my main purpose for posting is to see how common this practice is.

So, I get to work this morning and I have an email from someone who works in payroll asking if I authorized Kashia from Inbox Loans to garnish my wages. The notice is coming from Apex Debt Management but the original creditor is Inbox Loans (a payday loan company). I responded to payroll stating that I've never heard of Apex Debt Management and that they certainly do not have a court order to garnish my wages. I also asked or a copy of the original document they received. I've attached it here slightly edited with XXXXXX replacing my personal information along with the company I work for.

After receiving the document I filed an FTC complaint (171102-2613707). The main reason I filed the complaint is that I'm concerned that this is a common tactic with this collection agency and I'm concerned that other debtors with less experienced payroll departments may end up falling for this (probably illegal) tactic. I'm not necessarily trying to profit off this but I think that something needs to be done or this creditor will continue to try garnishing people's wages without a court order.

A couple quick facts:
1.) The original loan was only $200
2.) I've never received an assignment notice from Apex proving they legally own the debt
3.) I don't necessarily dispute the original debt but as mentioned above, Apex hasn't proven they actually own it
4.) They certainly do not have a court order and ironically they are asking for 15% of disposable income when the law is actually 25%. That small detail sort of proves that they either don't care about the law or are completely ignorant

What would you do if you were in this situation? For now, I'm waiting on the resolution of the FTC complaint. If the company responds that they will put an end to this practice immediately I may call that good enough and let things end there. If they continue harassing me though I'm definitely willing to take this to court and I might even see if we can turn this into a class action lawsuit as I'm obviously not the only person they've tried this trick on.



  • Valued Member
  • Posts: 2178
Re: Should I sue Apex for trying to garnish my wages without a court order?
« Reply #1 on: November 02, 2017 03:35:07 PM »

It isn't an illegal garnishment.  When you took out that payday loan you agreed they could get an automatic "assignment" of your wages to them in the amount of 15% if your ACH payment of the loan did not go through.  They provided a proper copy of the electronic agreement you signed. 

You have an out though:

"NOTE: THIS WAGE ASSIGNMENT IS REVOCABLE AT WILL You may revoke this Wage Assignment by
sending a written revocation to Kashia d/b/a Inbox Loan, PO Box 637, Blanding, UT 84511. The written
revocation must state your name, date of your loan agreement, and a statement that you wish to revoke the Wage Assignment."

Do this immediately. 
Be VERY careful following advice from the internet! What worked for someone with thousands of posts on a message board may not work for YOU in your state.  Consult a lawyer when ever possible.


  • Valued Member
  • Posts: 2
Re: Should I sue Apex for trying to garnish my wages without a court order?
« Reply #2 on: November 02, 2017 03:53:52 PM »
After re-reading the demand for garnishment I see that clause now. I had noticed it before but I was assuming that statement applied to the company and not me. In other words the company could opt out of the garnishment. I'll prepare a quick letter and send it today opting out. Not that it will matter anyways. Monday is my last day at this job and payroll already said they aren't going to process this garnishment anyways.

I just need to get the opt out done as I'm sure they will try this again with my next employer.


  • Valued Member
  • Posts: 10768
Re: Should I sue Apex for trying to garnish my wages without a court order?
« Reply #3 on: November 02, 2017 04:20:54 PM »
Send a copy of that letter by FEDEX or UPS so you are able to track the delivery.  Also send a copy by CMRRR.  Those two steps will put hard lines on the status of the agreement that you can use in legal proceedings in the future.

If your current employer is not going to honor the garnishment, you're not going to be put in a cash bind.  But you really need to protect yourself from having to deal with the situation with any new employer.


  • Valued Member
  • Posts: 8601
  • Welcome to my Temper Tantrum
Re: Should I sue Apex for trying to garnish my wages without a court order?
« Reply #4 on: November 02, 2017 06:24:43 PM »
Back in the 1970's the Federal Trade Commission banned Irrevocable Wage Assignments. This Revocable Wage Assignment is legal. Revoke it immediately.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)