Creditor sent letter saying they will contact my employer!

[magnumpi217]

I had a loan out from a finance company in Illinois. I could not make the payments due to medical issues and I set up arrangements to pay past due balance. I could no longer pay what they wanted each week and therefore stopped paying it. They sent me a letter stating that they will contact my employer within 5 days for assistance in liquidating my past due balance. They have no judgement or any papers filed. Is this legal?

[RobertEG]

You need to check out the relevant statutory provisions related to creditor contact with your employer.

It is likely a state, and not a federal, issue, as the creditor is not covered under the FDCPA.

[thom02099]

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@magnumpi217 wrote:
I had a loan out from a finance company in Illinois. I could not make the payments due to medical issues and I set up arrangements to pay past due balance. I could no longer pay what they wanted each week and therefore stopped paying it. They sent me a letter stating that they will contact my employer within 5 days for assistance in liquidating my past due balance. They have no judgement or any papers filed. Is this legal?

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If you have not already, Google the word "garnishment" and you'll come up with what they could be doing.  Garnishing your wages to satisfy a debt. 

In addition to explaining what it is, the Google results can also show you the various laws in different states, and what your rights are in cases such as this.  Read up on it.  Being informed is your best protection.