r/legaladvice•
The8thKing

Law Firm Made My Employer Start Paying My Debt

On December 31st 2016, I was given a subpoena, by a company that I owed a debt to. The letter stated that I had 10 days to contact the law firm representing this collection to avoid paying any legal fees and avoid going to court. The debt was for $2204.98.

When I contacted this law firm through e-mail, we had arranged a payment agreement with my first payment being $331.00 by the end of January and $100.00 every month following. This was all on a PDF file that I had to sign and give back to them either by mail or over e-mail. I had told them about my situation that put me in this predicament in the first place and told them I no longer had a checking account and had to switch banks. I only had a savings account which was limited to 6 withdrawals per month and had arranged to make payments at one of their physical locations and pay with cash instead. With that being said, I did not sign any agreement because the person I was in contact with told me they informed the company I would now be making physical location payments with their accounting department.

I had missed payments for March, but later made two payments totaling $200.00 in April bringing my account now to $1573.98. Now I never received a receipt stating how much was left on the balance, but it did show the everything else including the amounts paid, who took the payment, date, and time. I missed May, June and July's date is coming up where I plan on paying $300.00 to make up for the 2 past missed payments.

Today I am at work checking my pay stubs because my last check that came in was extremely low. I check in and find that there is a deduction labeled as 'Garnishment'. It is for $217.23. This has now happened on two of my paychecks for July 7th and July 21st. This came as a surprise to me. I ask my supervisor what that means and he tells me to call our corporate payroll to find out information on that as he has no idea himself. All he knew was it was sometimes taken out for child support or divorce alimony etc. Seeing as I am a single man with 0 kids, I called right away.

When I made the call to payroll they had told me a law firm has gotten into contact with them asking to settle the debt for me. I ask the name, and sure enough it is the law firm representing that company I was ALREADY arranged to. She had told me that they were deducting pay from my checks until the debt was paid off. I was furious at this point and can hardly remember what she was saying or what I was saying at this point. I do remember one thing however. She told me the total to be paid until my paychecks would no longer be deducted. $2000. I'm not familiar with Utah debt collection laws so any info would be appreciated.

My apologies for the long story, but my questions for everyone here today are as follows:

  1. Can a law firm even contact my employer demanding a payment from my paycheck?
  2. Can my employer even make this decision without even discussing this issue with me?
  3. What steps should I take to solving this problem?

Posted Jul 21, 2017, 9:50 PM UTC

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