wage assignment
Definition
A loan provision stipulating that in the event of default, payments will be deducted from an employee's wages. Prohibited in some states.
Use wage assignment in a sentence
“ You should try to make sure that you give out the right wage assignment so that everything is fair for all. ”
“ Make sure that you read the fine print of the loan agreement as, depending on the state you live in, it may contain a wage assignment. ”
“ When Mr. Smith lost his job, the Smith family was forced to live on just Mrs. Smith's salary, so the family made the hard decision to default on an auto loan. They did not realize that the loan had a Wage Assignment provision and soon found themselves with absolutely no income. ”
