legality of document

I have an online installment loan with USA Webcash and got behind on the payments -- original loan amt was 550 -- i have paid back $200 -- they sent a voluntary wage assignment to my work to try to deduct money from my paychecks -- as you will see in the picture, they stated that per "Utah Law, employers are obligated to honor a properly served demand by a creditor for a valid wage assignment" -- that ONLY applies in cases where the deduction is for Child Support and is thru the Office of Recovery Services.

I did speak with them today -- and asked them what it would be to just settle the account -- they told me $1180 -- and that i had to do a min payment of 240 today and 360 on this thursday in order to avoid 'garnishment' and that 'garnishment' papers have been sent out.. I then asked them if they had 'sued' me and been awarded a judgment, in order to garnish me?? they said well.. no .. I also asked if we could just settle for less, bc obviously I can't afford that amount due to a lot of financial changes that have happened in my life recently...

I sent them an email asking if we could settle for less on this and have received zero response

just wondering what the legality of that paper is, since it isn't a true statement?