Legal Question in Credit and Debt Law in Virginia

Re: Verbal loan agreements

Va. Code section 40.1-29 (C) prohibits any withholding from wages other than by written agreement. I believe that doing so is also a violation of Federal Law because it's a nonjudicial garnishment in excess of the limits imposed, but that's a technical argument.

One thing you said caught my attention: you said he didn't "sign" he just "initialled." First, a "signature" is not an "autograph" - it doesn't have to be handwritten, doesn't have to be a name - it is "any sign or symbol used or adopted with the present intention of authenticating a writing". An "autograph" on the other hand, is one's own handwritten name, but it has no legal effect because it's not made to authenticate a writing. So, "initialling" is "signing". Secondly, you said there's no written agreement, but he "initialled" something, right? What was on that something other than the initials?

But, as Mr. Press points out, an oral agreement to loan money is an agreement, and your husband could be sued for breach of the agreement. So, the way the employer did it was wrong and could result in lots of trouble for him (especially if someone complained to the Virginia Dept. of Labor - Wage and Hour Division), but if your husband really owed the money, he's not out anything.

Re: Verbal loan agreements

Withholding from his pay may not be legal if he did not agree in writing to do it. This does not defeat the employer's claim for the amount still due, but damages could be treated as an offset to reduce or eliminate the amount due. If he is sued, see a lawyer.