Illinois General Assembly - Full Text of SB2804
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Full Text of SB2804  99th General Assembly


Sen. Daniel Biss

Filed: 5/3/2016





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2    AMENDMENT NO. ______. Amend Senate Bill 2804, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Illinois Wage Assignment Act is amended by
6changing Sections 2, 2.1, 2.2, 4.1, and 4.2 as follows:
7    (740 ILCS 170/2)  (from Ch. 48, par. 39.2)
8    Sec. 2. Demand on an employer for the wages of wage-earner
9by virtue of a wage assignment may not be served on the
10employer unless:
11        (1) There has been a default of more than 40 days in
12    payment of the indebtedness secured by the assignment and
13    the default has continued to the date of the demand;
14        (2) The demand contains a correct statement as to the
15    amount the wage-earner is in default and the original or a
16    photostatic copy of the assignment is exhibited to the



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1    employer; and
2        (3) Not less than 20 days before serving the demand,
3    notice required under Section 2.2 a notice of intention to
4    make the demand has been served upon the employee, and an
5    advice copy sent to the employer, by 2 methods: (i) first
6    class mail; and (ii) registered or certified mail.
7    Service of any demand without complying with this Section
8has no legal effect. Proof of certified mail is prima facie
9evidence of service.
10    A demand under this Section applies only to wages due at
11the time of service of the demand and upon subsequent wages
12until the total amount due under the assignment is paid, or, if
13the wage assignment is revocable under federal law, until the
14employee revokes it or until the expiration of the employer's
15payroll period ending immediately prior to 84 days after
16service of such demand, whichever first occurs.
17(Source: P.A. 88-395.)
18    (740 ILCS 170/2.1)  (from Ch. 48, par. 39.2a)
19    Sec. 2.1. A demand shall be in the following form:
20    "Demand is hereby made upon an assignment of salary, wages,
21commissions or other compensation for services, executed by
22.... and delivered to .... on (insert date), to secure a debt
23contracted on (insert date).
24    The total amount of the debt is $..... Payments in the
25amount of $.... have been made. The duration of the contract is



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1.... months. There is now due and owing without acceleration
2the sum of $...., the last payment having been made on (insert
4    The employee herein named has been in default in his
5payments in the amount of $...., of which $.... has been due
6and owing for more than 40 days.
7    Unless you have received a written notice from the employee
8herein named revoking the wage assignment within the past 20
9days, or do receive within 5 days after the service hereof, a
10notice of defense from the employee herein named, you are
11required by law to make payment in accordance with such
12assignment. ...., first being duly sworn, deposes and says that
13the facts stated in the demand above are true and correct; and
14further deposes and says that he (or his principal, if he is an
15agent for the assignee) has not received notice from the debtor
16that he or she is revoking the wage assignment no notice of any
17defenses of the debtor.
18    Payments must be made until the total amount due under the
19assignment is paid or until the employee revokes the wage
22    Subscribed and sworn to before me on (insert date).
Notary Public".
25(Source: P.A. 91-357, eff. 7-29-99.)



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1    (740 ILCS 170/2.2)  (from Ch. 48, par. 39.2b)
2    Sec. 2.2. Forms; notice of intent to assign wages;
4    (a) The notice to an employee required by Section 2 shall
5be in the following form:
7    This notice is required by the Illinois Wage Assignment
8Act. The notice has been sent to tell you that a creditor (name
9and address listed below) plans to have your wages assigned. A
10wage assignment is a document you signed at the time you signed
11the contract for your debt. It authorizes your creditor to
12receive a portion of your wages directly from your employer, in
13order to pay your debt. This notice contains important
14information about the debt and what your options are. You
15should read the entire notice carefully.
17    You signed a wage assignment on ....... (date) ....... The
18wage assignment was signed as security if you failed to make
19payment on the contract you signed on ......... (date)
20.......... A copy of the wage assignment is attached. The
21creditor's records show that you have not made a payment since
22......... (date) ....... and that you now owe $........ on the
23contract. The creditor will send a demand for wages to your
24employer 20 days from the date you receive this.
26    If you have a legal defense to the wage assignment you can



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1stop the wage assignment by filling out the enclosed Notice of
2Defense Form and (1) sending it to the creditor by registered
3or certified mail and (2) giving a copy to your employer. You
4must do those 2 things within 20 days of receiving this notice.
5You have the right to contact an attorney concerning the wage
6assignment. In the event a false defense is made, you will be
7subject to payment of attorneys' fees, court costs and other
9    The creditor's name, and address, and phone number are:
(Signed by)"
15    (b) If the wage assignment is revocable under federal law,
16the notice required under subsection (a) shall also include the
20    There are options available to you in this process. You
21should consider your options and determine the one that is best
22for you. You have the right to contact an attorney at any point
23concerning the wage assignment, or to help you determine your
24best option.
25    Your options include:
26        (1) You can stop the wage assignment at any time, which



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1    will stop your wages from being deducted. It will not
2    eliminate your debt, and interest may continue to accrue.
3    You may contact your creditor for more information about
4    the interest rate on your contract, and to determine how
5    much interest might accrue if you stop the wage assignment.
6        Your creditor will still be able to pursue other means
7    of collecting any debt you may owe, including filing a
8    lawsuit against you for the full amount owed under the
9    contract and any interest that might accrue. A lawsuit
10    might result in you owing legal fees and other costs.
11        You can stop the wage assignment by filling out the
12    enclosed Revocation Notice Form, or by writing a letter
13    stating that you are revoking the wage assignment. Send the
14    Revocation Notice Form or letter by registered or certified
15    mail to the creditor, at the address listed above. It is
16    highly recommended that you give a copy of the Revocation
17    Notice Form or letter to your employer so your employer can
18    stop any pending payments.
19        If you choose to write a letter, it should be addressed
20    to the creditor, and should include:
21            (i) your name;
22            (ii) the account number; and
23            (iii) a statement that you are revoking the wage
24        assignment, such as, "I am revoking the wage
25        assignment."
26        Even if the wage assignment has already begun, you can



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1    still stop it now or at any point in the future.
2        (2) You can do nothing, and allow the wage assignment
3    process to proceed. Starting in 20 days, part of your wages
4    will be sent directly to the creditor to pay off your debt.
5    This will reduce your take-home pay every pay period until
6    the total amount of the debt is repaid.
7        Up to 15% of your wages will be sent to the creditor
8    every pay period. Once the total amount is repaid, the
9    creditor will send a notice to you and to your employer
10    that includes the creditor's name, your name, and the
11    account number, stating that the wage assignment is closed
12    and no further wages should be assigned.
13        (3) You can contact your creditor to repay the debt, or
14    to explore other options, including a repayment plan or
15    refinancing, if available. You can contact your creditor at
16    the address and phone number listed above.
17        If you agree on another repayment option with your
18    creditor, the creditor will send a notice to your employer
19    stating that your wages should not be assigned.
20    (c) If the wage assignment is revocable under federal law,
21the notice required under subsection (b) shall be accompanied
22by the following Revocation Notice Form, with the relevant
23information inserted by the creditor:
25The employee's name and address are:



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4The creditor's name and address are:
9Re: (insert account number)
10    I, (insert name), hereby revoke the wage assignment I
11signed on (insert date the wage assignment was signed). You no
12longer have my permission to use this wage assignment.
13......................    ......................
14(Signed by)               (Date)"
15(Source: P.A. 83-867.)
16    (740 ILCS 170/4.1)  (from Ch. 48, par. 39.4a)
17    Sec. 4.1. Revocation of wage assignment. If the wage
18assignment is revocable under federal law, the employee may
19revoke the wage assignment at any time by submitting the
20Revocation Notice Form as provided in subsection (c) of Section
212.2 of this Act or otherwise providing written notice of
22revocation to the creditor. Revocation is effective regardless
23of how the creditor receives it. Failure to use the sample
24language provided in the notice described in Section 2.2 does



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1not affect the validity of the written notice of revocation.
2The employee may submit a copy of the notice to his or her
3employer. If the written notice of revocation is served upon
4the creditor prior to the creditor's service of demand upon the
5employer, the demand shall not be served. Within 20 days after
6receiving the notice required by Section 2 or within 5 days
7after service of the demand, the employee may notify his
8employer, in writing, of any defense he may have to the wage
9assignment. A copy of such notice shall be served upon the
10creditor by registered or certified mail. If served upon the
11creditor prior to the creditor's service of demand upon the
12employer, such demand shall not be served by the creditor. The
13notice shall be by affidavit and shall be in substantially the
14following form:
15    "I, ...., hereby (swear) (affirm) that I have a bona fide
16defense to the claim of ...., which claim is based on a debt
17contracted on (insert date), and for security on which debt a
18wage assignment was executed.
Address for service of summons
23    Subscribed and sworn to before me on (insert date).
Notary Public
26(Source: P.A. 91-357, eff. 7-29-99.)



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1    (740 ILCS 170/4.2)  (from Ch. 48, par. 39.4b)
2    Sec. 4.2.
3    If the employee has not served a Revocation Notice Form as
4provided in Section 4.1 of this Act or has not otherwise served
5the creditor with a written notice of revocation (if the wage
6assignment is revocable under federal law) given notice of
7defense as provided in this Act within 20 days after receiving
8the notice of intention to make a demand, the creditor may
9proceed with his demand, and the employer shall commence
10payment to the creditor not sooner than 5 business days after
11service of such demand, if no revocation notice has been
12received by the employer unless a notice of defense is received
13within that 5 day period. If the employee cures the default
14stated in the demand or revokes the wage assignment, the
15creditor shall notify the employer and release the demand. No
16employer shall be liable for payments made in compliance with
17this Section.
18    If a Revocation Notice Form as set forth in Section 4.1 of
19this Act or other written notice of revocation from the
20employee is received by an employer, If a notice of defense is
21received by an employer within the period specified in Section
224.1, no wages are subject to a demand served by the creditor
23for that wage assignment and the employer shall cease any
24deduction of wages currently taking place for that wage
25assignment, described in that notice of defense; unless the



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1employer receives a copy of a subsequent written agreement
2between the creditor and employee authorizing such payments. If
3such an agreement is not reached, the creditor may not
4institute further proceedings on the wage assignment. If a
5notice of defense has been given, service of summons in any
6subsequent proceeding on the debt for which the wage assignment
7was given as security may be made by registered or certified
9(Source: Laws 1967, p. 2049.)
10    Section 99. Effective date. This Act takes effect January
111, 2017.".