Charlotte, NC asked in Small Claims and Collections for North Carolina

Q: I obtained a loan for 1,000 in Dec 2019 and unfortunately defaulted. With added I retest and fees balances went to almot

6,000. They offered a settlement of around 1500. I was able to send in $550 but was unable to settle as soon as they wanted. I continued to stay in contact but they voided the settlement. I am in NC but the loan originator is out of state. My question is will they automatically garnish my wages or will this go before a judge and I can try to settle another way if they bring judgement against me?

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1 Lawyer Answer
Lynn Ellen Coleman
Lynn Ellen Coleman
Answered
  • Collections Lawyer
  • KERNERSVILLE, NC
  • Licensed in North Carolina

A: More details are needed. Was this an internet "payday loan"? if so, they are unlikely to sue. If this was a local finance company or a bank, they might sue or they might not. We do not have wage garnishment in North Carolina. If this is an out of state lender they may sue you in that state and be able to garnish, but they have to sue you first. Specifically I see a lot of Virginia loans from the payday lenders up there or the finance companies if you went to an office up there, suing and garnishing. It all depends on how you got the loan.

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