Wage Assignment in Illinois

all wage assingments are revokable. i would put in writing to revoke any wage assignments that the company might have against you. unlike wage garnishments, they did not go to court for this (it is not a court order) and it can be revoked at any time.

Even after the demand has been served? My payroll department is not very familiar with this process what do I tell them?

i would tell them that it is your right to revoke.. the demand is basically the company being bossy and scaring your HR. hopefully someone will come along here with the law that states you can revoke.. for them to not allow you to is illegal.

Do I have to sign and notarize the affidavit of Defense?

The Affidavit of Defense is required by the IL Wage Assignment Act. You can fill that out and return it to stop the wage assignment (but by IL laws you have to fill it out and return it no later than 5 days after the Demand was served, so you'd have to get a copy to payroll and All Credit by 11/8).

Like others have said, you can also revoke your wage assignment. That is a Federal law (google FTC Credit Practices Rule) and it supercedes IL laws. Unlike the Affidavit of Defense, there is no time requirements for you to revoke your wage -- you can do it at any time, even after the demand has been served.

A word of caution though: if you revoke your wage, or fill out that affidavit, you should be prepared to make payment arrangements. Legitimate companies (All Credit Lenders is licensed in IL) tend to file lawsuits once the customer revokes their wage assignment. From looking at the Cook County Court website, All Credit Lenders does file lots of lawsuits.

having dealt with ALL CREDIT i can attest to everything DC is posting.

We are in the process of filling for Chapter 7 and we should be filling in the next couple of weeks but I will be sending the wage assignment revocation letter today at lunch time and I already gave a copy to my HR lady but she doesn't understand and told me ''well when will I know? Because I'm scheduled to start taking this out on Tuesday 11/10 when I process payroll'' I told her it was not a court order but she still doesn't get it what can I give her or show her to make her understand that I revoked my wage assignment and she should not be taking anything out?

The wage asssignment form that you signed when you took the loan should state something like: "Any undersigned Debtor may revoke his assignment at will by written notification to the holder. This assignment shall remain effective as to all of the undersigned Debtors not electing to revoke their assignment. " By law, All Credit should have given a copy of the wage assignment form along with the Demand. Tell your H/R to read that statement.

Or refer her to the Code of Federal Regulations (16 CFR ?? 444.2) which states that:
[QUOTE]
a) In connection with the extension of credit to consumers in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is an unfair act or practice within the meaning of Section 5 of that Act for a lender or retail installment seller directly or indirectly to take or receive from a consumer an obligation that:
...
(3) Constitutes or contains an assignment of wages or other earnings unless:
(i) The assignment by its terms is revocable at the will of the debtor, or
(ii) The assignment is a payroll deduction plan or preauthorized payment plan, commencing at the time of the transaction, in which the consumer authorizes a series of wage deductions as a method of making each payment, or
(iii) The assignment applies only to wages or other earnings already earned at the time of the assignment.
[/QUOTE]

please keep us posted, it angers me when people refuse to help because they do not know the law.

I have dealt with ACL myself and I revoked my wage assignment with no problem. ACL will call your references listed on the application. They called my cousin several times and she had to yell at them to stop calling her. I'm preparing to file chapter 13 in a month or so and everyday they called me and everyday I told them the same thing. They became very annoying.