Economics Commons^™

The Evolution Of Garnishment And Wage Assignment Law In Illinois, Bradley A. Hansen, Mary Eschelbach Hansen

Economics

Recent research shows that, despite high interest rates, wage earners in the early twentieth century frequently obtained credit from retail shops, from loan sharks, and from the emerging formal consumer credit market. When wage earners defaulted, the options for collection available to their creditors were governed by state laws on garnishment and wage assignment. These important laws varied widely from state to state, and little is known about their origins or evolution. In Illinois, the law put significant restrictions on creditors in the late nineteenth century, but the restrictions were removed in the first quarter of the twentieth century. This …