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Can a Payday Lender Garnish My Wages?
Your wages can be garnished only as the result of a court order in Colorado. There is an exception for federal student loans which are in default, but there is certainly no exception for payday loan or cash advance companies.

If you don’t repay your loan then the payday lender can sue you to collect on the debt. If they win, or if you do not dispute the lawsuit or claim, the court will enter a judgment against you. The judgment states the amount of money you owe, and ONLY the judgement allows the creditor to get a garnishment order against you. Cash advance companies or payday lenders will add costs of collection, interest and penalties so that you end up being sued for much more than you borrowed.

Wage garnishment happens when your employer holds back a portion of your wages for your debts. In Colorado a creditor can get 25% of your wages from each paycheck until the judgement debt is paid in full. If a payday lender attempts to garnish your wages without first serving you with a lawsuit notify the payroll department at your employer of this and contact your state's attorney general office. You may also contact an attorney for assistance.

Don’t ignore a lawsuit summons or other notices from a court or the lender. If you do, you could lose the opportunity to fight a wage garnishment or it could become much more difficult to do so. I have also had clients who have a hard time paying for a lawyer and fixing the problem because of an ongoing wage garnishment. Dealing with the problem as soon as possible by planning ahead is the best course.