I had a Payday Loan which I defaulted on. I tried desperately to make payment arrangements with them and they adamantly refused. They filed a Small Claims Court action against me. I filed a Defense with the emails showing I was trying to settle the account. The Defense was returned by the court because I didn't sign 1 of the pages. I signed it and sent it back again. I have now received a Default Judgment in the mail and the court is saying they didn't receive the second package (which is strange since I sent it to the same address as the first time). I spoke to the court and they basically called me a liar accusing me of not sending the second package. I don't know what to do! The amount is now $855.00 and they won't consider payment arrangements. Can they garnish my wages if they have a Default Judgment? HELP! I'm in Ontario, Canada.

They have to apply for garnishment, they can't just start doing it without court authorization. In all honesty, regardless of whether the company/collector is willing to agree to payment arrangements or not, they cannot Legally refuse payments from you. Basically a judgement just means that it will be on your credit report for 20 yrs and that the court has agreed that you owe the funds. It doesn't change how creditors deal with you, you'll still get calls and letters, they just won't be threatening legal action since that's already taken place. With income tax season here, you can always offer to pay a large chunck from your return and then pay the remainder. Creditors are usually willing to work with you :D Good luck

Frankly it is irrelevant if the court clerk received your second page or not as you still owe the money and now they have a Judgment against you. The creditor can and probably will garnish your wages if they know where you work. Payday loans have finely worded contracts that they make you sign. Get out a copy of what you signed and you will see that they have this incorporated into their contract you signed.

In Ontario Canada, you can make a motion to the SCC to have the default judgment set aside and file your defense (fee: $40.00) OR, if garnished, you can request a garnishment hearing (fee: no charge) where payment arrangement can be made.

Depending on when the contract was signed, part of your defence could be that the interest rate is contrary to the Criminal Code of Canada.

If you make a motion to have the default judgment set aside, it is unlikely that the Payday loan company will oppose as the unrecoverable cost of opposition could be more than what you owe them. The last thing a Pay Day loan company wants is to get in front of a judge trying to explain how they are charging a minimum of 640% per annum

I'm going to Small Claims Court with a PayDay loan company who started a Judgement, filed a Default and refused to discuss it with as per the Default options. I filed a Motion requesting a Court Date and served them with the appropriate evidence that clearly shows I was trying to clear the matter up and they refused to participate. They are suing me for more than 10 x the original loan amount. I'm curious if they will show up in Court. I would think they are charging interest and fees that far exceed the legal limit. Anyone have any experience with anything like this?

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Payday loan company's are only allowed to charge a certain amonut. The Cash Store was sued and lost and had to pay out millions of dollars to past customers that had used their service's. I defaulted on a payday loan once and it was over a year before I paid them and they only charged what I had taken out plus whatever the original payback fee would've been at the time. If you have the paperwork take a look through it and read all the fine print.