C.
Revocable Payroll Deductions: An employee may authorize deductions from his
earnings if the authorization is revocable. No deduction of earnings
authorizing the debtor's employer to withhold a specific amount from a debtor's
wages for payment of a debt arising out of a consumer sale, loan, lease or
rental-purchase agreement shall be considered revocable and otherwise in
compliance with Title 37 unless the consumer or, if authorized in writing by
the consumer, the creditor notifies his or her employer of the payroll
authorization in favor of the creditor and the authorization:
(1) Is in a writing:
(a) contained in a document separate from any
contract or agreement;
(b) executed
at the same time as the underlying transaction;
(c) bearing the debtor's signature and date
of signature; and
(d) a completed
copy of which is given to the debtor.
(2) Contains the following terms in clear,
easily understandable language:
(a) The name
and address of the creditor and the borrower;
(b) A statement that by signing the
authorization, the consumer is permitting his/ her employer to withhold the
consumer's earnings for payment of the debt to the creditor, unless the
consumer revokes such authorization;
(c) A description of the debt underlying the
authorization, including the type of debt, date of the transaction, the amount
of money advanced or paid, the interest and all other fees and charges paid or
agreed to be paid by the consumer, the time when the debt, if any, matures and,
if the debt is to be paid in installments, the amount and date of payment of
each installment;
(d) The total
amount to be deducted and number of payments the consumer intends to pay by
payroll deduction;
(e) A statement
that the failure of the consumer to notify the creditor of a revocation of the
earnings deduction does not affect the status of the revocation. The creditor's
contact information for receiving notice of revocation, including street
address and mailing address or e-mail address, must be provided. If the
creditor chooses to provide the consumer a form for use in the consumer
notifying the creditor of a revocation, an additional statement describing the
purpose of the form and that the use of the form is optional;
(f) The internet address and telephone number
for the Department of Consumer Affairs;
(g) The following statements in all caps,
bold-face type, in a font larger than any other language on the contract and in
immediate proximity to the space reserved for the consumer's signature on the
agreement that reads as follows:
(i) 'THIS
PAYROLL AUTHORIZATION IS NOT REQUIRED TO GET CREDIT OR TO GET CERTAIN TERMS OF
CREDIT.'
(ii) 'YOU MAY REVOKE THIS
AUTHORIZATION WITHOUT PENALTY, FOR ANY REASON AND AT ANYTIME BY CONTACTING YOUR
EMPLOYER. IF REVOKED, YOU NEED TO MAKE FUTURE PAYMENTS DIRECTLY TO
US.'
(iii) 'IF YOU CHOOSE NOT TO
NOTIFY US THAT YOU REVOKED YOUR AUTHORIZATION AND PAYMENT IS NOT RECEIVED WHEN
DUE, YOU GIVE US PERMISSION TO CONTACT YOUR EMPLOYER TO FIND OUT WHY THE
PAYMENT WAS NOT MADE.'
