SB2804 99TH GENERAL ASSEMBLY

LRB099 18541 HEP 44880 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2804

Introduced 2/17/2016, by Sen. Daniel Biss

SYNOPSIS AS INTRODUCED:

740 ILCS 170/2	from Ch. 48, par. 39.2
740 ILCS 170/2.1	from Ch. 48, par. 39.2a
740 ILCS 170/2.2	from Ch. 48, par. 39.2b
740 ILCS 170/4.1	from Ch. 48, par. 39.4a
740 ILCS 170/4.2	from Ch. 48, par. 39.4b

Amends the Illinois Wage Assignment Act. Provides that an employee may revoke a wage assignment at any time by submitting written notice that he or she is revoking the wage assignment to the creditor. Makes corresponding changes.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Wage Assignment Act is amended by changing Sections 2, 2.1, 2.2, 4.1, and 4.2 as follows:

(740 ILCS 170/2) (from Ch. 48, par. 39.2)

Sec. 2. Demand on an employer for the wages of wage-earner by virtue of a wage assignment may not be served on the employer unless:

(1) There has been a default of more than 40 days in payment of the indebtedness secured by the assignment and the default has continued to the date of the demand;

(2) The demand contains a correct statement as to the amount the wage-earner is in default and the original or a photostatic copy of the assignment is exhibited to the employer; and

(3) Not less than 20 days before serving the demand, a notice of intention to make the demand and a revocation notice form has been served upon the employee, and an advice copy sent to the employer, by 2 methods: (i) first class mail; and (ii) registered or certified mail.

Service of any demand without complying with this Section has no legal effect.

A demand under this Section applies only to wages due at the time of service of the demand and upon subsequent wages until the total amount due under the assignment is paid, until the employee revokes the wage assignment, or until the expiration of the employer's payroll period ending immediately prior to 84 days after service of such demand, whichever first occurs.

(Source: P.A. 88-395.)

(740 ILCS 170/2.1) (from Ch. 48, par. 39.2a)

Sec. 2.1. A demand shall be in the following form:

"Demand is hereby made upon an assignment of salary, wages, commissions or other compensation for services, executed by .... and delivered to .... on (insert date), to secure a debt contracted on (insert date).

The total amount of the debt is $..... Payments in the amount of $.... have been made. The duration of the contract is .... months. There is now due and owing without acceleration the sum of $...., the last payment having been made on (insert date).

The employee herein named has been in default in his payments in the amount of $...., of which $.... has been due and owing for more than 40 days.

Unless you have received a notice from the employee herein named that he or she is revoking the wage assignment within the past 20 days, or do receive within 5 days after the service hereof, a notice of defense from the employee herein named, you are required by law to make payment in accordance with such assignment. ...., first being duly sworn, deposes and says that the facts stated in the demand above are true and correct; and further deposes and says that he (or his principal, if he is an agent for the assignee) has not been notified by the debtor that he or she is revoking the wage assignment no notice of any defenses of the debtor.

Payments must be made until the total amount due under the assignment is paid, until the employee revokes the wage assignment, or until the expiration of the employer's payroll period ending immediately prior to 84 days after service of such demand, whichever first occurs.

...........................

Subscribed and sworn to before me on (insert date).

...........................

Notary Public".

(Source: P.A. 91-357, eff. 7-29-99.)

(740 ILCS 170/2.2) (from Ch. 48, par. 39.2b)

Sec. 2.2. Forms; notice of intent to assign wages; revocation.

(a) The notice to an employee required by Section 2 shall be in the following form:

"NOTICE OF INTENT TO ASSIGN WAGES

This notice is required by the Illinois Wage Assignment Act. The notice has been sent to tell you that a creditor (name and address listed below) plans to have your wages assigned. This notice contains important information. You should read the entire notice carefully.

WHY THE CREDITOR WANTS TO ASSIGN YOUR WAGES

You signed a wage assignment on ....... (date) ....... The wage assignment was signed as security if you failed to make payment on the contract you signed on ......... (date) .......... A copy of the wage assignment is attached. The creditor's records show that you have not made a payment since ......... (date) ....... and that you now owe $........ on the contract. The creditor will send a demand for wages to your employer 20 days from the date you receive this.

WHAT YOU CAN DO TO STOP PREVENT YOUR WAGES FROM BEING ASSIGNED

You If you have a legal defense to the wage assignment you can stop the wage assignment at any time by filling out the enclosed Revocation Notice of Defense Form or by writing a letter stating that you are revoking the wage assignment and (1) sending it to the creditor by registered or certified mail. If you choose to revoke the wage assignment, it is highly recommended that you give a copy to your employer so your employer can stop any pending payments. Submitting this form or a letter will not eliminate your debt; it simply stops your wages from being assigned. The wage assignment will begin 20 days after you receive this notice. You can stop the wage assignment at any time before or after the wage assignment begins. If you choose to write a letter, it should include:

(i) your name;

(ii) the account number; and

(iii) the following statement: "I am revoking the wage assignment. You no longer have my permission to use this wage assignment."

The letter should be addressed to the creditor at the address listed on this notice and sent by registered or certified mail. You have the right to contact an attorney concerning the wage assignment or the loan product. and (2) giving a copy to your employer. You must do those 2 things within 20 days of receiving this notice. You have the right to contact an attorney concerning the wage assignment. In the event a false defense is made, you will be subject to payment of attorneys' fees, court costs and other expenses.

The creditor's name and address are:

......................

......................

......................

......................

(Signed by)"

(b) The Notice of Intent to Assign Wages to an employee required by Section 2 of this Act shall be accompanied by the following Revocation Notice Form, with the relevant information inserted by the creditor:

"REVOCATION NOTICE The employee's name and address are: ...................... ...................... ...................... ...................... The creditor's name and address are: ...................... ...................... ...................... ...................... Re: (insert account number)

I, (insert name), hereby revoke your right to use the wage assignment I signed on (insert date the wage assignment was signed). You no longer have my permission to use this wage assignment.

...................... ...................... (Signed by) (Date)"

(Source: P.A. 83-867.)

(740 ILCS 170/4.1) (from Ch. 48, par. 39.4a)

Sec. 4.1. Revocation of wage assignment. The employee may revoke the wage assignment at any time by submitting the revocation notice as provided in subsection (b) of Section 2.2 of this Act or otherwise providing written notice that he or she is revoking the wage assignment to the creditor. Regardless of how the employee serves the revocation notice, the revocation notice is not void if the creditor receives the revocation notice. Failure to use the sample language provided in the notice described in Section 2.2 does not make the letter revoking the wage assignment void. The employee may submit a copy of the notice to his or her employer if the employee so chooses. If the revocation notice is served upon the creditor prior to the creditor's service of demand upon the employer, the demand shall not be served by the creditor. Within 20 days after receiving the notice required by Section 2 or within 5 days after service of the demand, the employee may notify his employer, in writing, of any defense he may have to the wage assignment. A copy of such notice shall be served upon the creditor by registered or certified mail. If served upon the creditor prior to the creditor's service of demand upon the employer, such demand shall not be served by the creditor. The notice shall be by affidavit and shall be in substantially the following form:

"I, ...., hereby (swear) (affirm) that I have a bona fide defense to the claim of ...., which claim is based on a debt contracted on (insert date), and for security on which debt a wage assignment was executed.

..............................

Address for service of summons

..............................

Employee

Subscribed and sworn to before me on (insert date).

............................."

Notary Public

(Source: P.A. 91-357, eff. 7-29-99.)

(740 ILCS 170/4.2) (from Ch. 48, par. 39.4b)

Sec. 4.2.

If the employee has not given a revocation notice as provided in Section 4.1 of this Act or has not otherwise provided the creditor with written notice that he or she is revoking the wage assignment notice of defense as provided in this Act within 20 days after receiving the notice of intention to make a demand, the creditor may proceed with his demand, and the employer shall commence payment to the creditor not sooner than 5 business days after service of such demand, unless a revocation notice as set forth Section 4.1 of this Act or other written notice from the employee revoking the wage assignment is received by the employer notice of defense is received within that 5 day period. If the employee cures the default stated in the demand or revokes the wage assignment, the creditor shall notify the employer and release the demand. No employer shall be liable for payments made in compliance with this Section.

If a revocation notice as set forth in Section 4.1 of this Act or other written notice from the employee revoking the wage assignment is received by an employer, If a notice of defense is received by an employer within the period specified in Section 4.1, no wages are subject to a demand served by the creditor and the employer shall cease any pending wage assignments described in that notice of defense; unless the employer receives a copy of a subsequent written agreement between the creditor and employee authorizing such payments. If such an agreement is not reached, the creditor may not institute further proceedings on the wage assignment. If a notice of defense has been given, service of summons in any subsequent proceeding on the debt for which the wage assignment was given as security may be made by registered or certified mail.

(Source: Laws 1967, p. 2049.)