Wage assignment


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Wage assignment

A loan agreement provision allowing the lender to deduct payments from an employee's wages in case of default.

Wage Assignment

A voluntary deduction from a person's paycheck. One may contribute to a retirement account, repay a debt, or make any number of other payments through wage assignment. It contrasts with wage garnishment (which is done for taxes or child support, for example) because it is voluntary.
References in periodicals archive ?
Possible creditor remedies are garnishment, wage assignment, late charges, and attorney's fees.
Based on these two continuous variables, a third variable, defined as the larger of the garnishment and wage assignment variables, was calculated for each loan.
The final model adds (to the economic and legal variables) two cross-product terms which capture the interaction between interest rate ceilings and late charges and between interest rate ceilings and garnishment or wage assignment. These cross-product terms are included since the impact of these creditor remedies may vary with the level of the interest rate ceiling.