Collection Actions: 15.2.5 Wage Assignments
Wage assignments—contractual clauses by which a worker assigns their wages to a creditor or some other entity—can affect debtors in ways similar to wage garnishments. While the CCPA wage garnishment limits do not apply to wage assignments,218 the Federal Trade Commission’s Credit Practices Rule prohibits wage assignments in connection with the extension of credit to consumers in or affecting commerce.219
There are three exceptions, however. A wage assignment is allowed if: