Wage Assignment Fact Sheet & FAQ

Resource Overview

The Wage Assignment & Consumer Protections Bill (SB2804 / HB5776) addresses 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.

Under federal law, a borrower can stop a wage assignment at any time and for any reason. However, the current notice that a borrower receives is misleading and does not communicate a borrower’s rights under federal law to stop the wage assignment.

The Wage Assignment & Consumer Protections Bill will create a clearer wage assignment notice – ensuring that borrowers know their rights under federal law to stop a wage assignment at any time, and for any reason.

Take a closer look at SB2804 / HB5776.

More Related Resources

Fact Sheet: Illinois needs a Strong CFPB

The Consumer Financial Protection Bureau (CFPB) reins in predatory practices in mortgage lending,...

Read more

Wage Assignments: Know your Rights

Wage assignments are a way that some lenders, particularly payday lenders, take a portion of a...

Read more

Webinar: Auto Title Lending in Illinois

Jody Blaylock from IABG and Spencer Cowan from Woodstock Institute hosted a webinar on the findings...

Read more