The Wage Assignment & Consumer Protections Bill (SB2804) passed out of the Illinois House unanimously today. Having passed the Senate earlier this month, it now heads to the Governor’s desk for his signature.
The bill strengthens consumer protections for Illinois borrowers experiencing a debt collection practice called wage assignments. Wage assignments are a way that non-traditional lenders, such as payday lenders, access a borrower’s wages when they default on a loan.
Unlike a wage garnishment, a wage assignment does not go through the courts. Instead, the lender sends a notice directly to the borrower, letting them know that they will be taking a portion of their wages.
Sponsored by Senator Biss & Representative Welch, SB2804 creates a clearer wage assignment notice in Illinois. This will ensure that borrowers know their options in the wage assignment process, including the right to stop a wage assignment at any time and for any reason.
SB2804 will now be sent to Governor Rauner for his signature. We thank our sponsors for their leadership on this issue and urge the Governor to sign this bipartisan bill into law.
Update (8/26/2016): SB2804 was signed into law today! We will be creating a “know your rights” fact sheet on the wage assignment process, so stay tuned.