From the Archives: July 2013

JOINT AGENCY ACTIONS: Final Garnishment Rule 

The joint agency final rule was effective June 28. The final rule amends garnishment of accounts containing federal benefit payments. The amendments make significant changes credit unions should be aware of. The most significant change is related to the definition of “garnishment order” which has been revised to include a levy issued by a state, state agency or municipality. Another revision includes an exception to the prohibition against charging or collecting a garnishment fee after the date of account review if funds other than benefit payments are deposited to the account at any time within 5 business days following the date of account review. There was also a revision to require that the credit union send a notice to an account holder only where the credit union has established a protected amount and there are funds in the account in excess of the protected amount. Lastly, there were revisions related to the definition of “benefit payment” and “protected amount.”

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