Championed by IABG and our partners, and sponsored by Senator Biss & Representative Welch, 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.
SB2804 strengthens the wage assignment notice by clearly outlining a borrower’s options in the wage assignment process, including the right to stop a wage assignment at any time and for any reason. These rights are also broken down in our new fact sheet, which is intended to help borrowers when their wages are assigned.
We thank our sponsors for their leadership on this issue and our partners who worked to advance the bill.
Beginning January 1, 2017, Illinois borrowers should receive a much clearer notice when the lender initiates the wage assignment.
In the meantime, we want to spread the word about borrowers’ rights in the wage assignment process. Please share this fact sheet with anyone who has taken out a payday loan.