It is frequent to confuse assignment and attachment on salary, here are the explanations of an assignment on salary in a grouping of loans. Read more at mirrorofbeauty.com
Attachment and assignment of wages: distinction
A wage attachment corresponds to the deduction of a sum of money from the wages of a worker following an enforceable title requiring the use of a bailiff.
An assignment on wages corresponds to the deduction of a sum of money from the wages of a worker with his amicable agreement beforehand. This is therefore a voluntary act of the borrower. The latter can be requested as part of a credit consolidation.
Redemption of credits with an assignment on salary
A banking partner can request at the conclusion of the credit consolidation contract the repayment of the monthly payments by way of an assignment on salary.
That is to say, the amount of the due will be directly deducted from the household salary. The employer is not informed of the nature of this levy.
The borrower must then go to the registry of the district court on which his domicile depends and complete a declaration on the spot. A list of documents is necessary to establish the payday assignment: salary statements, identity documents, and a document indicating the amount of loan repurchase as well as the monthly payments.
Buyback loans with an assignment: an obligation?
When a loan consolidation offer including a payday assignment is proposed to a borrower, the latter remains free to accept or refuse it.
Simply put, if this is the only offer of financing for a household, it is worth thinking about it seriously and studying all the other possible avenues before rejecting it.
Otherwise, the transfer on pay has the advantage of better managing it’s budget because the levy being made at source, the household is sure to honor its commitments on time.