Skip to content
BOL Conferences

Thread Options
#967566 - 06/02/08 04:58 PM Levy/Garnishment Customer Fee
Bankster Offline
Gold Star
Joined: Aug 2004
Posts: 440
Midwest
Can anyone tell me what the fee limit is that a bank can charge a customer for a garnishment or levy imposed on their account?
_________________________
It's karma, baby.

Return to Top
#1005405 - 07/25/08 08:19 PM Re: Levy/Garnishment Customer Fee Bankster
Banker Gal Offline
Member
Banker Gal
Joined: Oct 2003
Posts: 74
We currently charge the customer $25.00 for the processing of the garnishment/levy.

Return to Top
#1005668 - 07/27/08 12:59 PM Re: Levy/Garnishment Customer Fee Banker Gal
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 84,599
Galveston, TX
It will depend on the type of levy or garnishment.

I'm not a that familiar with Minnesota law, but there are some specific statutes:

270C.54 COLLECTION OF FINANCIAL INSTITUTION FEES.
The commissioner shall collect from a taxpayer any collection fees or costs charged by financial institutions and incurred by the commissioner.

That may mean that you can charge the commissioner in this case, but maybe not the customer. This really is a question for your attorney.

Also,

The Minnesota Department of Human Services, Child Support Enforcement Division will pay the financial institutions $15 for every FIDM levy request. The $15 fee should not be deducted from the client account.

IRS levies have to be handled under IRS rules:

5.11.4.3.3 (05-05-1998)
Fees for Processing Levies

1. Many banks charge their customers a fee for processing levies. The bank is not entitled to reduce the levy proceeds to collect the fee.

Hope that gives you a start.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1010138 - 08/01/08 04:34 PM Re: Levy/Garnishment Customer Fee rlcarey
Bankster Offline
Gold Star
Joined: Aug 2004
Posts: 440
Midwest
Thanks!!!
_________________________
It's karma, baby.

Return to Top
#1040394 - 09/11/08 06:31 PM Re: Levy/Garnishment Customer Fee Bankster
123bank Offline
New Poster
Joined: Oct 2007
Posts: 7
We handle IRS and State of MN items differently than other garnishments.

State of MN and the IRS get their money first. If there is anything left - we charge the fee.

Any other entity - we take our fee first, garnishment money comes second.

Return to Top