422.404

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422.404 Assignment of earnings.

422.404(1)

(1) No merchant shall take or arrange for an assignment of earnings of the customer for payment or as security for payment of an obligation arising out of a consumer transaction unless such assignment is revocable at will by the customer.

422.404(2)

(2) A revocable assignment of earnings made as payment or as security for payment of an obligation arising out of a consumer credit transaction, which would otherwise expire under § 241.09, shall be deemed to be renewed for a term not to exceed 6 months if:

422.404(2)(a)

(a) The original authorization contained a conspicuous notice of the customer’s right to revoke;

422.404(2)(b)

(b) Prior to expiration, the merchant mails a notice to the customer which conspicuously states that the assignment of earnings is revocable, and that it shall continue to run for not more than 6 additional months, unless the merchant receives notice of revocation; and

422.404(2)(c)

(c) The customer does not revoke the assignment.

422.404(3)

(3) A violation of this section is subject to § 425.304.