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#2291300 - 12/01/23 08:59 PM Writ of Garnishment- processing fee
Compliance lady Offline
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Joined: Sep 2021
Posts: 13
Can someone tell me if there is a maximum fee we may charge to process a garnishment? I understand that this is a state law issue, this is specific to Texas. I have not been able to find this in a statute. Thank you!

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#2291301 - 12/01/23 09:28 PM Re: Writ of Garnishment- processing fee Compliance lady
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 85,431
Galveston, TX
I can find no specific limitation and it would fall under the general fees rule:

§34.303. Fees; Disclosures.
(a) Except as otherwise provided by law, a bank may charge an account holder a fee, service charge, or penalty relating to service or activity of a deposit account, including a fee for an overdraft, insufficient fund check, or stop payment order.

(b) Except as otherwise provided by the Truth in Savings Act (12 U.S.C. Section 4301 et seq.) or other federal law, a bank shall disclose the amount of each fee, charge, or penalty related to an account or, if the amount of a fee, charge, or penalty cannot be stated, the method of computing the fee, charge, or penalty. The disclosure must be made by written notice delivered or mailed to each customer opening an account not later than the 10th business day after the date the account is opened. A bank that increases or adds a new fee, charge, or penalty shall give notice of the change to each affected account holder in the manner provided by Section 34.302(b) for notice of an amendment of a deposit contract.
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#2291302 - 12/01/23 09:50 PM Re: Writ of Garnishment- processing fee rlcarey
Compliance lady Offline
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Joined: Sep 2021
Posts: 13
Thank you!

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#2291303 - 12/01/23 10:29 PM Re: Writ of Garnishment- processing fee Compliance lady
The OG Zaibatsu Offline
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The OG Zaibatsu
Joined: Dec 2007
Posts: 1,723
Texas
At the risk of being repetitive, I agree with Randy.

Nothing in either State or Federal law prevents you from charging what many call a "Legal Process" fee. Your fee should be stated in the fee disclosure - and if you are making a change to the fee you should disclose that change to all accountholders 30 days prior.

Please remember that IRS and state levies have priority, so pay those first and take your fee later. If necessary, take the account negative for a "Legal Process" fee still owed. It's a good idea to include that fact in any correspondence letter sent to accountholders regarding the action.

Sec. 34.302. AMENDMENT OF DEPOSIT CONTRACT. (a) A bank and its account holder may amend the deposit contract by agreement or as permitted by Subsection (b) or other law.

(b) A bank may amend a deposit contract by mailing a written notice of the amendment to the account holder, separately or as an enclosure with or part of the account holder's statement of account or passbook. The notice must include the text and effective date of the amendment. The bank is required to deliver the notice to only one of the account holders of a deposit account that has more than one account holder. The effective date may not be earlier than the 30th day after the date of mailing the notice unless the amendment:

(1) is made to comply with a statute or rule that authorizes an earlier effective date;

(2) does not reduce the interest rate on the account or otherwise adversely affect the account holder; or

(3) is made for a reason relating to security of an account.
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