01/02/2012
On page 13 of the handout for the new federal regulations, the 7th paragraph states "...the claim may serve as a continuing lien against future deposits that do not involve "benefit payments...". <i>Federal Register</i> Volume 76 Issue 36 page 18 paragraph 4 states "A small number of States authorize the issuance of a "continuing" garnishment order, i.e., an order requiring the garnishee to monitor, preserve and remit funds coming into the garnishees custody on an ongoing basis. The rule operates to prohibit a financial institution that is served with a continuing garnishment from complying with the order's ongoing requirements." My questions are: Do we monitor the account for 30 days as the garnishment states for deposits that are not protected funds? On page 9 of the same volume in the 8th(?) paragraph it states "The Agencies intend ... to ensure that after a garnishment order is received, the account holder continues to have the same degree of access to the protected funds that was provided prior to the receipt of the order." Does that mean that we cannot leave a hold on the account to avoid withdrawal of unprotected funds, still covering checks with protected funds? Also, would suspending the customer's debit card be against this?
09/12/2011
Other then on accounts containing Federal Benefit payments, are banks required to notify a customer when they receive a Garnishment notice?
08/15/2011
I attended the 2011 webinar, "New Requirements for Identifying Exempt Funds When Processing Garnishments: Final Regulations." Do we look at each account individually? A savings account has no "protected funds" going into it, however, the funds are from a checking account that is "protected." Does this matter or do I just take the savings account and not look back?
08/08/2011
Does the new Garnishment of Accounts for Federal Benefit Payments pertain to consumers and not businesses? Normally, a business will not receive any of these Federal payments. Are we still required to do the two month review for documentation when we receive a levy on a business?
07/04/2011
Does the new rule on Garnishments of Accounts containing federal benefits payments, apply exclusively to claims titled 'Garnishment' or do those titled Levy, Citation, etc also need to be included in making determinations?
06/06/2011
Is there a standard customer notice for the new Federal Benefit payments garnishment procedures?
05/30/2011
I am looking for a usable "Notice of Garnishment to Account Holder" to comply with the May 1 regulation change. Is it up to each FI to create their own custom form or is there a place where we can find one?
05/16/2011
Is an IRS Levy considered a Garnishment by the United States, or is a Writ of Garnishment by the United States simply when the US is the creditor? In other words, do IRS levies fall under the new rule?
08/16/2010
If we receive a subpoena with only an account number, can the bank require that the requesting party provide the believed identity of the account holder, especially when it is a Grand Jury and the bank cannot send customer notification? Also a writ of garnishment was received that only contained a name. Can the bank request additional information to confirm the customer's identity?
09/18/2006
Can the bank accept loan payments on a customer on whom we have been served a garnishment, or does the garnishment only pertain to deposit account relationships?