Consumer Comeback Blog

Credit Score Glossary: Wage Assignment

Wage Assignment: A process that allows a creditor to take money directly from a debtor’s compensation.

The borrower agrees to allow collection of a portion of his or her paycheck. Wage assignments are typically used for child support payments, court fines, when an employee wants to repay a loan from his or her employer, and for taxes that have gone unpaid for a long period of time.