How to Legally Revoke a Wage Assignment

Unlike a wage garnishment, a wage assignment is a voluntary agreement between you and a creditor. When you agree to a wage assignment, you are agreeing to allow a certain dollar amount, or percentage, of your wages to be held back and paid to the creditor toward satisfaction of a debt. Since a wage assignment is voluntary, you may legally revoke the assignment at any time by notifying your employer of your intention to revoke.

Step 1

Locate a copy of the original wage assignment for reference. Wage assignments are typically part of a payday loan or title loan agreement.

Step 2

Draft a letter to your employer, or human resources department of your company, indicating that you wish to revoke the wage assignment.

Step 3

Include in the letter the date of the original assignment, the assignment amount and to whom you assigned your wages. At the end of the letter, clearly state that you wish to "revoke the previous wage assignment referenced above" or similar language.

Step 4

Make two copies of the letter. Mail or deliver the original to your employer and mail a copy to the creditor. Save the other copy for your records.

Tip

Although many creditors may imply that the wage assignment cannot be revoked, the small print at the bottom of the loan contract will generally state that it can, in fact, be revoked.

Warning

Revoking the wage assignment does not eliminate your legal obligation to repay the debt. The creditor may still proceed to attempt to collect on the debt by other means such as filing a lawsuit against you.

references